Pricing plays an important role in successfully selling your home. Price it too high and you could scare off potential buyers. Price it too low and you may attract several less-serious buyers who can take up your valuable time.
But if you’re a seller eager to put your home in today’s market where buyer demand is high and the inventory is low, you have a definite advantage. Multiple offers from committed buyers are bound to drive up the price.
Taking all factors into consideration, finding that optimal price point can get you the best returns. How to do so? Here are some tips.
Develop a comparative market analysis
Examine the latest data on comparable homes that have been listed in your neighborhood or community. This comps will feed you with information such as recently sold homes, days on the market, and final sale price. It will also give you a good idea of how much money buyers are willing to spend on a particular property.
Several sellers work with real estate agents in developing a CMA. Not only will these professionals have access to reliable and up-to-date databases, but their insight and years of experience in certain neighborhoods can also add context to the numbers.
Take advantage of underutilized price ranges
Whether you’re looking at listings of houses for sale in Lawrence, Pennington, or elsewhere in New Jersey, you’ll often see price ranges that are too crowded. Five properties with similar features would be priced between $550,000 and $600,000 while the next set of homes would be in the range between $450,000 and $500,000.
In such a scenario, it is often wise to take advantage of that underutilized $500,000 to $550,000 price range to set yourself apart from the competition and to increase chances of exposure. All the more reason to do so if your research and agent’s advice nudges you towards that range.
Learn from expired, withdrawn, and active listings
There’s a lot to learn from an expired listing (the listing agreement term expired before a sale could be done) and a withdrawn listing (the seller has given up on marketing the home but the listing agreement is still active).
You can find out how many days these properties were on the market. From there, you can identify patterns that contributed to their expired or withdrawn status.
From high price tags to the name of the brokerages that marketed the home, take note of the details that most likely contributed to the failed sale. These insights will be helpful when you list your home and start entertaining offers.
Don’t forget to examine active listings, as well. Looking at similarly priced comps is an opportunity for you to put yourself in the buyer’s shoes. Take note of features that could make these properties more appealing in comparison to your home.
Work with an agent with extensive experience in your neighborhood
If you’ve decided to work with an agent, make sure that they are knowledgeable about your neighborhood and local real estate market. That way, you arrive at more informed decisions and commit less mistakes in your pricing endeavor. Less mistakes means avoiding costly bumps and delays in your selling timeline.
With David DePaola and Company Real Estate, you don’t have to worry about pricing your home. As a prime mover of Central New Jersey real estate, we have extensive experience in a number of neighborhoods to ensure you get maximum returns out of your property. Call us at 609.883.4161 or send an email to david(at)depaola(dotted)com to start working with us today.