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You will be tempted to price your home a little higher than the market will bear because you want to factor in negotiations. You are considering the seller concessions and home warranty and transfer fees that you will be requested to pay with a buyer’s contract. So why not start higher to compensate for what buyers might ask you for? The answer is simple. If you price your house too high or above the market value for your area, you take the chance of being on the market longer. The longer you are on the market, the more bargaining power you give buyers.
One of the first questions most Realtors are asked when showing a home is “How long has it been on the market?” The longer your home sits on the market the bigger the discount the buyers think they can get. It’s like putting a big red clearance sticker on your home that screams DISCOUNT. Don’t fall into this trap! Refer to your Realtor’s market advice and price your home accordingly. By pulling comparable sales in your area, your Realtor is able to give you the most current data to help you competitively price your home to sell quickly and for the most amount of money.
1. No showings = price is too high
2. Large number of showings but no offer = price is too high
Your Realtor will also advise you on how the market is performing. You need to know if it is a seller’s market or a buyer’s market. What do those terms even mean? A seller’s market is when there are more buyers than homes available for sale on the market. What does this mean to you as a seller?
This means you have a little more negotiating power because there is a high demand for homes. You, as the seller, have more control over the amount of seller concessions you are willing to pay and you will usually end up selling for very close to your list price.
What happens when it’s a buyer’s market? A buyer’s market is when there are more homes for sale than buyers. This usually gives more negotiating power to the buyer and seller concessions of 3% or more are very normal. Your list price is usually more flexible because you are competing with a large number of other homes for sale in the market. The buyer has more control in this type of market.
Keeping your home clean and clutter free will help sell your home faster. It might seem difficult to live like this but just remember it is only for a short amount of time. Your Realtor® will also advise you on what upgrades will add the most value to your home. Typically across the board, you will see the most return on your investment in kitchens and master baths. However, you will not see a dollar for dollar translation in value to your home. For example, if you spend $50,000 to remodel your kitchen, you will not typically see a $50,000 increase in the price of your home when you go to sell.
Trying to buy a new home at the same time as selling? MySoldMate lets you find a Realtor in two different areas, one where you're buying and one where you're selling. It is perfect for people moving to new cities!