Pricing your home is challenging because you want to make sure you price it right, so your home sells quickly, and you also earn a good profit. Many studies have shown that the longer the property stays on the market, the less money it will fetch when it’s finally sold.
Buyers in 2021 have access to a considerable amount of information about your home and other homes in the area from sites like Zillow and Realtor.com. With all that information in hand, it is unlikely that buyers will be taken in by a price that is way above market value. They can also see how long the property has been on the market, and when a property has been on the market for more than 30 days, that gives buyers a hint to go for a lower price.
Unfortunately, many sellers are still under the impression that pricing a home higher, leads to a higher sale price. Sorry to break it to you, but this is not the case. Homes priced correctly from day one end up getting more money than those that have to reduce the price over time.
Trompeter Real Estate agents understand the critical situation of pricing a home, and that’s why they will understand the crucial factors when pricing your home for sale. Let us reveal these factors to you!
4 Surprising Factors That Go Into Pricing a Home
Pricing your home to sell quickly – even in today’s hot real estate market – is all about balance. You have to price it low enough to attract potential buyers but high enough to profit. While it may be tempting to use automatic estimators, it’s best to leave the numbers to your agent.
Here are a few factors your agent will take into consideration when valuing your home:
Your home’s size and condition
This may seem like a given, but a home’s size, condition, and features play a huge role in how much it’s worth. Before you list, your agent will perform a walkthrough of your home to evaluate its condition and features thoroughly. If your space is move-in ready and well-maintained, you’ll have more luck setting a higher asking price.
Many sellers are under the impression that big-ticket upgrades will drastically increase their home’s value, but this isn’t always the case. Before you make a significant change, ask your agent for their professional opinion. Believe it or not, smaller touches like updating hardware or repainting may give you a better return on your investment than a full-scale renovation.
Real estate is all about location, and there are a few general factors that tend to boost property values. Typically, agents will price a home based on local schools, nearby employment opportunities, and proximity to transportation, restaurants, bars, parks, coffee shops, etc. Homes in more desirable neighborhoods or communities also tend to command a higher list price.
Above all, most buyers are looking for homes that offer the perfect blend of privacy and convenience. Being close to (but not right next to!) highways or public transportation is another huge plus.
Other recently sold homes
One of the best indicators of your home’s value is the sale price of other listings in your neighborhood. Your professional real estate agent should conduct a comparative market analysis—abbreviated as CMA—to see how your home stacks up against the competition. By looking at recently sold homes similar to yours, they can calculate a fair and accurate price.
After your agent has assessed your home, they’ll likely send you a CMA report that contains their projected price, along with data from other comparable homes. A good agent should also answer any questions you may have about this comparative market analysis! All these can be confusing if you are buying a home for the first time, but once you have found a real estate agent you can trust, the process will be much simpler.
Current market trends
Even if your home is in perfect condition, in the best location, and boasts quite a few upgrades, the current state of the market can have a huge impact on its overall value. And in today’s seller-driven market, homes are now worth more than ever before.
Just last year, home prices surged by 15%. To put those numbers into perspective, that’s a $45,000 increase for a $300,000 home. If you want to take advantage of these unbelievable conditions, now is the time to list—and we’d love to help!
Get Your Updated Home Value
Whether you’re just curious or ready to sell, you can trust our team to calculate your home’s true market value. Please request a free home valuation today, or reach out to us to learn more about 2021’s hot real estate market. There’s never been a better time to list!