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What Price Should You Set For Your Home?
Setting the right price for your home is a complex undertaking and also one of the most important items to consider when selling your home. While you as the seller are solely responsible for setting the price, how much you will actually get for your home is driven by the market. If you are selling in a home in Katy, TX, selling a home in Sugar Land, TX, or anywhere else, the fundamental pricing principles are the same.
If you price your home too high, buyers might overlook your home and thereby extend the time it takes you to sell it. Price it too low and buyers might think there’s something wrong with the house. Getting it right is the key to selling it within your expected time frame and maximizing the amount you receive on the sale.
The state of the current real estate market is important to understand when setting an initial listing price. Are you entering a buyer’s market or a seller’s market? A seller’s market happens when there are more buyers than sellers. This drives prices higher as demand outweighs supply. In severe seller’s markets, homes sell quickly and for prices close to or at the asking price. Sometimes buyers compete for newly listed homes and actually bid above the asking price. In a buyer’s market, the opposite is true. Sellers compete for buyers and prices are driven downward.
The other homes on the market can also influence the price you can get. If a home that is very similar to yours is priced lower, the buyer will certainly choose it over yours. It’s hard to compare homes in this way because the features of one home hardly ever line up exactly with another. Average sale prices across competitive homes on the market and recently sold homes with adjustments made for different features can help level the playing field and get comparative values aligned.
Our approach to pricing your home correctly involves careful consideration and analysis of many factors. We look at the overall market conditions, the competitive properties on the market, properties that have recently sold, the condition of your home, and more. We then recommend a price point that will get your home sold in the time frame that works for you. It’s a best practice pricing model that works in any market. The pricing decision is ultimately yours. We help you make that decision from an informed perspective.
Always remember that the market ultimately sets the price. We give you a realistic analysis of the market and an honest pricing recommendation. While it might be tempting to select a realtor that claims they can get you more for your home, you might find that they’re misleading you just to get your home listed with them. If priced too high, your home will sit on the market for long periods of time, after which the realtor will recommend that you reduce the price (to the real market price). This strategy can negatively affect your home’s value because homes that are on the market for long periods of time sell for less than homes on the market for shorter times. Buyers tend to think there’s something wrong with a home if it’s been on the market a long time.
This article was written by Mark Rosney, Certified Senior Advisor (CSA®) and REALTOR® with Keller Williams Premier Realty. If you’d like to see how this pricing analysis applies to your home and review an expert opinion of your home’s current market value, call or email today.
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By Mark Rosney, Certified Senior Advisor (CSA®)