Pricing right is one of the most important aspects to selling a home.
Price too low, and you are leaving hard-earned money on the table or worse…you can actually create a reverse incentive for buyers to view the home since they may assume the property is in need of extensive repairs. Price too high, and the listing will languish on the market until everyone grows bored of seeing it.
Use these simple steps to obtain a ballpark figure on finding the right price for your home.
Obtain current comparable estimates. If you live in a neighbourhood with similar-sized homes, try to find a recent sales example and then extrapolate the price per square foot to derive a rough rule of thumb. Increase or decrease the estimate based upon condition, age, upgrades and other amenities.
Include income potential. If the property is capable of generating an income via rental or other ventures, then use the profit potential of the property to estimate the return on investment or ROI. Most investors expect an ROI at or above the safe, headache-free option of investing in Treasury bonds.
Get a second opinion. Work with a real estate agent who specializes in that location to provide valuable feedback and a second opinion. Remember, if you expect a fast sale then search for all available properties and then plan to price your home near the bottom range of the properties currently listed and sold in the area.