Pricing your home to sell may seem like a simple step when it comes time to list the property, but it requires a lot of information, research, and an emotional detachment from the property.

It is important to know what other houses on the market in the same neighbourhood are being listed and sold for currently. The price that other comparable homes sell for will impact your home’s selling price.

Attract More Buyers

Pricing a home to sell will attract more potential buyers and encourage a quick sale, allowing the owners to move on to their new property on time. If a property is listed based on emotional attachment or without due diligence, there is the likelihood that it may sit on the market far longer than it should.

When it comes to determining the selling price of a home, REALTORS® determine what the house is worth based on the current real estate market and what features the property boasts. To decide the fair market value, REALTORS® will analyze comparable houses sold in that neighbourhood in the past quarter. It won’t be any house, though; a proper analysis will use comparable homes with similar square footage, number of rooms, amenities, etc. From that analysis, REALTORS® will determine a price range.

Once they have settled on a reasonable price range, the REALTOR® will look specifically at the house to be listed. They will take note of the age of the property, its size, how many bedrooms and bathrooms it has, and any renovations and upgrades completed to the home. From that, the REALTOR® will have a fair market value for the home.

Competitive Pricing

There is a possibility that the list price will then be at or slightly below the fair market value. Listing at a competitive price point will help get the most buyer interest possible without under-pricing the home and losing money. A house priced lower than market value will often have more than one offer, driving the price up.

When a REALTOR®  lists a house competitively, it attracts buyer attention. A competitive list price is ideal for sellers not looking to be locked in a negotiation battle with one single buyer.

Contrary to what sellers may believe, a house listed at a high price point does not mean they will get a windfall of money. Instead, that price point may deter buyers before they even see the home, especially if there are a lot of houses on the market or the pickings are slim. Pricing a house to sell right from the beginning means avoiding price adjustments if the house sits on the market too long.

Is selling your home taking too long?

A house that sits on the market too long (even if price adjustments have been made) is a deterrent to prospective buyers. Instead of seeing an attractive price, they may only see how long the house has sat on the market and wonder what problems the property may have that no one has wanted to buy. Additionally, those who make an offer on the house will not provide a full-price offer like they probably would have had the home been priced correctly from the beginning.

With the high importance placed on pricing a home to sell, it’s equally important to work with a REALTOR® who is familiar with and skilled at pricing homes, including the analysis of the fair market value. Some REALTORS® will be more skilled than others, so take the time to find an real estate agent that is right for you and will help you sell your home quickly and at a price that will satisfy you.