Pricing a Home to Sell
When selling your home, attractive pricing and packaging are the two most basic essentials. In the current real estate market, buyers have plenty of choices with new builders, architectures and world class amenities at a price.
Comparable Listings and Sales: Look out for similar home listings in your neighborhood over the past 6 months. This is the starting point for any thoughtful and successful pricing strategy. Look for similar carpet area, age of the house, direction of the main entrance etc. It's important to have a clear understanding of true market value.
Pending Sales: As these are pending sales, the actual sale price isn't known. Try calling the agent and asking them to tell you the price and pretend to negotiate. Make note of the days in the market, you can get an idea on how long it will take to get an offer.
Don't Overprice: Many people fall into this trap while pricing a home. Over pricing can shoo away customers and you might quickly find yourself in a chasing market which can be a big loss for you.
Negotiation: Leave some room for negotiation, no seller wants to feel he lost money with the deal and no buyer wants to feel he overpaid. The price you list should give both parties room to negotiate. Also, try to understand what buyers are offering and buy time by delaying your decision. This helps you analyze different options.
Update: It is quite important to update your home with plain paints, replace door knobs, polish salted taps or replace them. This can be a small investment but can get you massive returns.
React: It's important that you react swiftly to the market trends, if you find that you've overpriced, you should correct them soon before you lose out potential customers.
Commission: Negotiate higher commissions to the agents, they would grab it and market your deal with higher priority. Something similar to what LG and Samsung have done in India for home appliances.
First impressions are important while selling your home. Expiry date on your pricing is very short, make sure it catches the attention of most agents and potential buyers.