ORLANDO, Fla. — If you want to sell your home in today’s market, the price has to be right. You don’t have to have the cheapest home in the neighborhood, but your home should offer an excellent value in its particular market category.
Whether you have an inexpensive starter home, a “move-up” family home, a luxury penthouse condominium or something in between, members of Florida Realtors® say the same principle applies: Price your home so the buyer can perceive its value.
To help you determine an effective asking price, consider these suggestions:
- Analyze the Market— Start by analyzing the current housing market and the pricing of comparable nearby homes. “Every seller needs to be aware of the level of normal sales and distressed sales (i.e., foreclosures and short sales), and the pricing of homes in your area and act accordingly,” says David Dabby, president of Dabby Group in Coral Gables, Fla. Realtors® can help you through this process by conducting a comparative market analysis (CMA), which shows the prices of homes with similar features that have sold recently in your neighborhood. In markets with a large inventory of homes for sale, setting a competitive price may well be the most important factor in achieving a rapid sale.
- Be Realistic — Because local market conditions can change quickly, don’t base your pricing on outdated information. Remember that it’s the buyer who decides how much to pay for a home – not the seller. If you price your home too high, it simply won’t sell.
- Don’t Factor in Your Costs — Most owners have made improvements to their homes over the years. But when it comes time to price your home for sale, you may or may not be able to recover those costs. A $20,000 pool, for instance, might have been worth every cent to your family. But it might have little value to a non-swimming buyer.
- Creating a Win-Win Scenario — Setting a price that is fair for the home, the neighborhood and the local market will make everyone involved with selling your home happy. Think of it as a win-win situation for you and the potential buyer!
With longer marketing periods, foreclosures and large inventories, Realtors can help you price your home for sale. “Realtors are critical in today’s market, even more so now than when the market was booming,” says Dabby.