In a shifting real estate market, if your home is on the market for more than one week, it could be losing value daily!

It’s so important to price your home correctly when it first goes on the market so that it sells for the very best price possible. If you have been in discussion with your agent about price for a couple of months while you have been getting your home ready for market, you need to re-evaluate that price the day before you go live on the MLS.

That means not pricing it too low, but also not pricing it too high (buyers will cross it off their list).  Even when inventory is low and buyers are eager to view any listing that comes up, you don’t want to make any mistakes with your initial pricing. 

Here are my 10 best tips to make sure you price your home perfectly.

1. Look at recent comparable properties or “comps.” It’s a given that you have to look at these, but how you interpret this information is what matters most.
2. Know what a comparable for your home actually is.  It’s a home that is similar in size, layout, location, and condition and sold within the last six months.
3. Pay attention to homes that have not only sold,  but homes that are new on the market, homes in contract, and homes that are not selling as well.
4. Don’t just look at the asking price, but also the net price.  Did it go up or down from the asking price?  Did the seller pay buyer closing costs or give credits to the buyer? 
5. How is the comparable home different than yours when you take out size, location, and condition?  Did it have a better or worse view; a better or worse street; a better or worse yard?  Be honest about the differences and how they would impact the price of your home.
6. Only look at the most recent homes sold.  Appraisers look as far back as 6 months to arrive at a value, so you should look at homes that have sold within the last six months as well.  The more recent the better, especially if the market is rapidly changing.
7. What you paid for your home a few years ago or what you could have gotten at one time is not relevant when pricing your home to sell today. Don’t ever get stuck with this thinking at all!
8. You can’t count on getting every dollar you’ve spent on your home throughout the years.  Unfortunately, sometimes what we like, not everyone likes. Every homeowner hopes any upgrades are solid investments with a good return. It’s time for some honest evaluation and understanding of how well your home shows to today’s buyers.
9. What’s the inventory now or in the next few months? If there is less inventory and more buyer demand, then you may be able to set your home’s price a bit higher. But remember to tread carefully here so you still attract buyers to view your home. That way, they are the ones who could push the price up due to multiple offers.
10. Go with the flow of the market!  Every market is a little different, but there is usually a curve to the flow. Homes may sell better in spring and summer than in the winter months. Unless you are in a time sensitive situation that is non-negotiable, speak with your agent about the best time of the year to market your home.

Pricing a home is both an art and a science.  There are many more factors that go into pricing that I’m happy to share with you! Whatever your situation, I’m here to help!

As always, I am your go to resource for all things real estate.