Your home is one of your largest assets. When it comes time to sell it, maximizing your return is essential to your financial well-being. One of the most important decisions sellers must make is where to set the asking price. When homes are priced too high, they can sit on the market, which can impact a buyer's perceived value. When a home is priced too low, sellers can leave money on the table. The key is to find the sweet spot.
Our real estate agents are experts at helping sellers find the right asking price. Here are some tips we often offer to our clients:
- Bad Advice: Going With Your Gut
Guessing or estimating an asking price as opposed to using data is not recommended. Finding the right asking price can be as simple as looking at other recent nearby home sales for guidance. Try to find a few homes similar in size that have sold recently in the neighborhood, or check out the asking price on these Cleveland homes for sale. Both sources can provide you with a realistic idea of what the market will pay for a home like yours.
- Bad Advice: Pricing High Because You Have Time
If you're not in a hurry to sell, you may think you can start high and then ultimately lower the price down the road if needed. However, the risk here is that your home sits on the market too long. In a hot market, price decreases can also give buyers cold feet. Even if you have time before you have to sell, you should still start at a reasonable asking price.
- Bad Advice: Pricing High To Allow Room For Negotiating
This is common and useful logic when selling many things, but not when selling a house. Setting a high asking price with the expectation you'll receive a lowball offer can be risky. If a home is priced too high, many buyers won't even bother to make an offer.
- Bad Advice: You Should Always Price In Profit
In an ideal world, we would all make a profit on our home sale; however, it's not always feasible. While homes generally appreciate, changing market conditions can limit your ability to make a profit. If you're forced to sell during a buyer's market, automatically pricing in a profit might not make sense if similar homes in the neighborhood are selling for less.
When it comes to pricing your home, there is a lot of bad advice out there. Looking for the best advice? Find a good real estate agent to help you set the right asking price. Contact us today to list your home.