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Pricing Your Home

Pricing Basics

Once you are on the MLS and your home is getting full market exposure, your price becomes the most important aspect of getting it sold! 

Home values are typically determined by comparable sales in the area, priced by the square footage of a similar home nearby. A home is considered similar if it is relatively the same size, condition, has similar amenities, and is close in proximity. For example, if a 1824 sq ft home recently sold for $228,000 the price per square foot is $125. Therefore, if your home is 1744 sq ft you could expect to price it around $218,000.

Once arriving at that price, you can add or subtract to account for specific differences between the homes. For example, if your home has a new inground pool but the other home did not, it will increase the value of your home.

Online Resources

Zillow.com provides a proprietary Zestimate, which is their estimate of your home's value. Visit zillow.com and search for your address to see what they have listed. While it might not always be accurate, buyers will also reference this site to get an idea of what your home is worth. Visit Zillow.com now.
Bank of America has a property value tool which uses comparable sales in the area to assign a price range to your home. Visit the site here.
ElectronicAppraiser.com is another great resource that uses local recent comparable sales to appraise your home. They provide a full report showing full data for all the comparable sales. Visit ElectronicAppraiser.com now.

Choosing the actual price

A lot of people are tempted to list at $199,999 or $149,999 however we recommend that you round to the closest whole number! This is because of how the real estate search engines work. When a buyer chooses their minimum and maximum prices in the search criteria, they are often limited to choose specific cutoff points. If you list your home for $149,999, but the buyer searches for homes $150k - $175k, your home will NOT be included in the results. If you had listed at $150k, you would be returned in search results on both sides of that price.

Other Factors

Different situations may also impact how you price your home, such as your timeframe and other motivating factors. For example, if you have an offer accepted on a new home, and need to be under contract by a specific date to remove your contingency, you may want to price your home more aggressively to attract more buyers.

If you have not found another home yet, and are just looking to get your house listed to test the market, you have more flexibility to price it at or above market price. That way you can gauge interest at a higher price to see what the market affords. If you don't get any activity, you can always drop the price, which is exactly what a full service agent would tell you to do. Price changes are always free with our listings.

Frequently Asked Questions

How do I know if I priced my home right?
Is your phone ringing? If so, you probably priced it right! If you are not getting any activity after a week or two, it's probably time to think about dropping your price. 

Are there any other pricing resources I can use to help me choose a price?
Certainly! There are a number of online resources that will help to give you a ballpark price, many of which we mentioned above.  Beyond those, to get the most accurate market pricing you could certainly hire an appraiser to provide a pre-sale estimate of value. Remember, you can always change your price for free so you can start higher and drop as necessary.

How often should I drop the price?
We recommend lowering your price when your activity has declined. If you get activity for 2-3 weeks, and then nothing for a week or two, it's time to adjust price and get more buyers interested. Every time you modify your price, it not only makes your property appear in lower price range searches, but it also refreshes your listing in automated serches within the MLS. 

Is price really that important?
YES! We track every one of our listings that doesn't sell. Sometimes homeowners give up on flat fee MLS and re-list full service. Every single person that has done this and eventually went on to sell had to drop their price. Every single one! If they had dropped their price while still a flat fee listing, they would have still sold and they would have saved the commission that they then had to pay. If you house is not getting activity, it is overpriced!

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