If you decided that it is time to sell your house, you need to consider a lot of factors before making the transaction. First, you need to determine if you want to work with top real estate agents in Lakeland, FL. If you’re going to take on this task on your own, then you need to list your property, promote it, stage it, and so on.
One thing that most people tend to underestimate is determining the correct price of their home. You can’t just decide on a number that you think is suitable and run with it. A lot of planning and research go into this part of the selling process.
Here’s what you need to know.
Evaluate the Market at the Moment of the Sale
Before you decide what strategy to use when pricing your home, you need to know the evolution of the local real estate market: is it a seller’s market or a buyer’s market?
Typically, in a seller’s market, deals are closed at a higher price than the initial one, or at least get to one, eventually. Often, bidding wars start between buyers, and this is how homes get sold above their real market value.
If houses in your neighborhood seem to take forever to sell (and being on the market for more than a month is usually a bad sign), then it may not be the best moment to inflate the price or to set it too low, as you are making a transaction in a buyer’s market.
There are online tools that you can use to evaluate your local market, see how the prices curve over time, and for how long the average house stays on the market.
Compare Your Property with Similar Ones in the Area
When scouting the market for properties similar to yours, don’t go further than three months back. Search your area and try to be realistic about your house’s advantages and flaws.
Don’t be fooled by the proximity of another house that sold at a reasonable price because the location is not the only factor to take into consideration. Find out how old the other houses are, how big they are, how many bathrooms they have, and so on.
You might also want to check the deals that already went through nearby: what homes have been sold in the area and what is the difference between the initial price and the final offer.
Decide If You Will Go with the Market Price, Above It or Below It
All the information collected so far should give you a clear idea of what your pricing strategy should be. If you are putting your house on the market when sellers have the advantage, you can play more with the pricing. You may go beneath the market price and see if your home will trigger a bidding war.
Having to sell your house in a buyer’s market will require a bit more caution. A price that is too high will discourage the buyers and push them towards your competition while going too low will not leave you any space to negotiate.
Finally, take the advice of a seasoned real estate agent and go for it. Timing is crucial on the real estate market, so if the signs around you seem favorable, give it a try and see how accurate your pricing is.
Need Real Estate advice? Get in contact with the RE/MAX Experts today!