Selling a house is a major decision and it’s important to price it correctly in order to maximize your profit.
Determining the right price for your house when putting it on the market can be a complex process, but it’s crucial in order to maximize your profit.
There are plenty of things you can do to price your home correctly for sale and I find that following the following pointers will put you in the best position to do so.
Here are a few steps to help you determine the right price for your house when putting it on the market:
Conduct a market analysis
A market analysis involves researching recent home sales in your area to determine the average price of similar properties.
This can be done by looking at online estate listings, talking to estate agents in person, or checking out home price websites, some of which also give estimates of your home’s current worth.
Websites such as Zoopla are great for seeing what houses in your area have sold for in the past and for getting an estimated value of your own property.
From my experience though, the price estimations can be on the high side and are therefore not always accurate.
The data collected will give you an idea of what similar homes in your area are selling for, and what the current market trends are.
It’s important to keep an open mind about the value of your home, and never believe the first valuation you get from an estate agent.
Ultimately it’s up to you what price you list your home for.
Find out more about conducting a market analysis
Get several professional valuations
A professional appraisal or estate agent will give you an accurate assessment of your home’s value.
An appraiser will inspect your home, consider its features, and compare it to similar properties in the area to come up with an estimate of its value.
Calling in a professional appraiser can be an expensive process, but it’s well worth the investment if you want to know exactly how much your home is worth.
However, for most people, calling in a few local estate agents will be all that’s required to gauge the market value of your house.
However, I find it’s important to take some of these valuations with a pinch of salt.
The agent might be pricing your property too low because they’re keen to get a quick sale and earn the commission.
Equally, they might be giving you an unrealistically high valuation because they want to flatter you and secure your business.
In the latter case, they’ll often push into dropping the price quickly after your property goes on the market.
Find out more about getting an appraisal if home
Set a competitive price
Once you have all the information, it’s time to set a competitive price.
Make sure that your asking price is in line with market trends and comparable homes in your area.
It’s important to not overprice your home, as this can deter potential buyers.
On the other hand, pricing it too low can mean you’re leaving money on the table.
Also, a lot will depend on how quickly you want – or need – to sell your home.
If you’re in no rush, or you’re selling a property that as part of an estate or one that you’ve inherited, you might be prepared to price it higher and wait longer for the right buyer.
However, if you’re keen for a quick sale, or in a chain, then you need to price your property appropriately.
Find out more about competitively pricing your home
Consider upgrades and improvements
If you have made any upgrades or improvements to your home, make sure to factor these into the price.
This includes things like a new roof, updated kitchen, or added rooms. These upgrades will increase the value of your home and should be reflected in the asking price.
Dressing your home for sale is an important step as this will help you decided on what you think your home is worth.
Find out more about upgrading and improving your home
Be flexible
If your house doesn’t sell quickly, be prepared to adjust the price to make it more attractive to potential buyers.
This may mean reducing the price slightly, or making some concessions such as offering to pay certain costs involved in the moving process.
Also, it’s important to remember that everything is negotiable so consider all options to secure a sale.
For example, I once sold a property where I agreed to the buyer’s slightly lower price on the basis that they were clear all the large items out of the home.
This worked out well for both of us as it saved me a logistical headache (the property wasn’t close to me) and they got a slightly better deal on the price.
It’s important to keep all options on the table.
Find out more about being flexible when selling your house
Conclusion
In conclusion, determining the right price for your home when putting it on the market requires a combination of research, market analysis, and professional advice.
Be flexible and open-minded and listen to the market – if buyers are active but your home isn’t selling, there’s probably a good reason and it’s likely to be the price!
