Are you gearing up to sell your house so you can upgrade to a more spacious property for your growing family? Selling a home is not easy, but market research, well-informed decisions and a pragmatic strategy can help you ensure a profitable sale.
Sellers are advised to make SMART decisions and set realistic expectations for a smooth, hassle-free selling process.
The Listing Price
The listing price of your house is the most significant factor in generating demand and attracting potential buyers. Many homeowners gravitate towards overpricing their home so they can leverage the forces of demand and supply to negotiate a profitable rate. The overpricing strategy doesn’t work because it dispels and scares off buyers.
Overpriced homes ending up languishing on the market for months, and eventually, sellers are forced to readjust prices in accordance with market rates. You see, the buyer is going to bargain for reductions until the last coin. Overpricing will only scare off buyers, and under-pricing will also bring about the same impression.
Usually, sellers under-price due to major repairs and maintenance issues, such as water damage, mold or mildew or pest infestations. It is wise to invest in repairing these issues, or disclosing the damages and setting a market-savvy listing price.
Market research is a crucial undertaking when it comes to setting a listing price. After all, the value of your house is determined by the market forces of demand, supply, location, amenities and overall architectural value. A seasoned realtor can help you research and setting a listing price in comparison with similar properties across your neighborhood.
Keep reading to explore how to setting a listing price that encourages potential buyers rather than scaring them away.
Cosmetic & Structural Integrity
When setting a listing price, it is crucial to visualize your home from the perspective of a buyer. Does the cost justify the amenities, architectural structure and cosmetic appeal? A potential buyer will dissect every nook and cranny of your property to identify defects and evaluate the worth of the amenities.
Now, this is an area where you can make improvements and increase the price of your home to recollect a sizable profit. But the price must be justified, and the buyer should be willing to pay this price to enjoy the amenities your house provides. How can you make this happen?
Start with a detailed inspection of your house, and a neutral examination of the square footage, flooring, structure, storage spaces, interior design, bathrooms, bedrooms, kitchen and overall landscape. Identify and list down all the strengths and flaws.
Now, you have two choices: eliminate the flaws or highlight and accentuate the improvements.
Making Upgrades & Improvements
If you’re determined to make a hefty profit, its crucial to add value to your home with dramatic upgrades and noticeable improvements. Now, this will require an investment, and the size of this investment depends on the profits you desire.
You can avoid under-pricing by eliminating all maintenance and repair issues, and ensuring that all home systems are in pristine condition. A fresh and rich coat of paint will enhance the cosmetic and interior appeal, and you can boost the curb appeal by cleaning up the lawn.
But how you can add more zeroes to the listing price? Consider undertaking a major upgrade, like adding a swimming pool or sauna to the backyard. Erecting a deck with an elaborate seating arrangement and a magical garden will also do the trick. Buyers are always attracted to state-of-the-art kitchen appliances, heaps of clever storage spaces and luxurious bathrooms.
You can work with a realtor and an interior consultant to explore the upgrades and improvements you can undertake to increase the market value and listing price. The goal is to make an offer that potential buyers find hard to refuse.
Market Research & Pricing Trends
Market trends and pricing valuation across your neighborhood are crucial factors that determine the actual worth of your property. If you want to set a pragmatic listing price that promises a profit, it is crucial to observe market trends. Here, you will have to collaborate with a realtor.
An experienced realtor will help you conduct a detailed inspection and appraisal with relevant professionals. A professional will also bring in real-time market data and statistics to determine the right price for your home.
As a seller, its not easy to overcome the emotional attachment you have with your home. But to ensure your financial well being, you must prioritize research and make fact-based decisions. The more time a property spends on the market, the staler it gets for potential buyers. The goal is to make a powerful impact with a listing price that is attractive and offers value to the buyer.
You will have to compare your structural and cosmetic value with those of similar properties in your neighborhood for a comparative evaluation.
Location. Location. Location
Location is one of the most significant factors in real estate valuation, and it is a strong determinant of the actual price and market worth. The location influences the price because buyers evaluate the neighborhood to determine their life quality.
They examine nearby amenities, entertainment avenues, quality schools and institutions, security, crime rates, transit and commuting facilities and more. All these factors stem from the location and determine the price. A high-end and posh metropolitan neighborhood that is centrally located and has a thriving business ecosystem enjoys higher demand than a remote countryside location.
The price of your house is a powerful factor to attract potential buyers and ensure a profitable sale. There are numerous aspects to consider, for instance, even the season has an impact on demand, supply and market value. For instance, the months January to December are somewhat slow, but prices rise incredibly high in spring and summer.
The summer months are good time to sale your house because there’s a higher demand and limited supply. Let facts and market research guide your decisions and make improvements to add value.