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Tips on How to Set a Price for Your Home

December 7, 2016

tips-on-how-to-set-a-price-for-your-homeYou have been planning to move, talked with the family, and are ready to put your home on the market. But, as you prepare things, you encounter a dilemma: what amount should you list your house for? Pricing is crucial to making sure you are competitive in the market, while still getting the return you need. Not sure how to set a good price for your house?

Here are some things to consider:

  • Establish your desired target price. We all have a certain sales price in mind that we’d like to receive in order to maximize our return. With that in mind, it is important to remember that prices are usually negotiated when an offer is made. So, start working around your target price and establish your listing price from there. This usually means pricing a little higher than your desired amount, as long as the market will support it. Just remember to ask yourself, “Is this reasonable based on comps in the area? Does my house look like it could sell at my target price? Will buyers be willing to pay this amount?”
  • Know what you can offer. Having more amenities in a home can increase its value. There are some things about a house you can’t easily change, namely how many bedrooms and bathrooms there are, the size of the lot, etc. But, there are items you can make more appealing, such as leaving the appliances with the house, having nice landscaping, making sure the aesthetics of your bathrooms and kitchen are up to date, etc.
  • Know your competitors. Competition is an important guidepost when selling. You need to know what your competitors are offering, so you can evaluate if you are pricing too high or too low. Compare their amenities and overall appeal with yours, and then price accordingly.
  • Price a little lower than your competition if you can. Even if it is only a matter of a few thousand dollars, buyers immediately find a lower priced house more appealing. If there is a lot of competition in your area, price your home a little under the other homes if you have the flexibility to do so. It will attract more buyers and usually cause them to view your home first.
  • Do not set anything in stone. You need to have realistic expectations that your asking price and contract price will probably be different. Be willing to compromise, so you don’t lose interested buyers. A lot of buyers like to negotiate, even if it’s minor, so be ready for that reality.
    Work with your real estate agent. Ultimately, Realtors are going to be the most knowledgeable about the market. There are many benefits to working with a Realtor versus trying to sell your home yourself. One of those is pricing because it allows you come onto the market strong and sell your home quickly.

Chris George Homes
Oklahoma City Realtor
Let’s get in touch: 405.843.8188

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