Your house has been on the market for a while, and you are wondering how to attract more potential buyers?
For starters, you should know how to price your home for sale. Just like other items for sale, a house’s worth is what someone will pay.
Many factors can affect a home valuation, including location, current market conditions, and the construction quality (or renovation).
When a homeowner decides to put a property on the market, he must know how long it takes to sell a house before finding a buyer.
This same information has always been relevant for real estate agents and other professionals in the sector.
How To Price Your Home For Sale
Ever wonder if you priced your home correctly before you put it on the market? If not, you might want to rethink your strategy. You should update the asking price before listing your house.
Global or national economic trends can cause home prices to fluctuate. For instance, in the United States, property prices dropped nearly 20% after the housing bubble burst in 2009 and are yet to recover fully (though they are rising).
When it comes to accurate comparison shopping, it’s important to remember that house prices change over time. Therefore, you can’t rely on outdated numbers. However, whether you’re a homeowner, a real estate agent, or a seller, there are some questions to consider before listing:
- What is my home worth?
- What is my home value estimate based on current market conditions?
- What are the factors that influence my home evaluation?
Home Pricing Factors
Doing your research is the best way to guarantee you’re getting a fair price for your home. Homes priced under $250,000 usually sell first, according to Market Watch.
It says an average house stays on the market for 68 days before selling. There are a variety of factors that influence home value like the following:
- Location
- Property condition
- The market situation
- Age
This article will provide helpful tips on determining home evaluation, home value estimates, and actual house worth.
How Long Should You Wait To Reduce The Asking Price Of Your Home?
Experts agree that if you reduce your home price, do it reasonably quickly, ideally, within two weeks of listing it initially. However, they believe that most activity occurs in the first 21 days on the market. So, do not miss out on this opportunity.
Additionally, you should wait based on your local housing market indicators, such as the average days on the market of homes in your area.
According to the National Association of Realtors, existing-home listings in August 2020 stayed on the market for 22 days on average. It usually takes about 33 days of marketing before you get an offer.
Before you decide to lower the price, do the math to see the chances of selling your home within 33 days.
According to most experts, a home should be on the market for about two months before reducing the price.
However, it may be beneficial to lower the cost-per-square-foot if sales are sluggish at a higher price to appeal to a broader range of potential buyers.
According to a recent survey by blockchain-based real estate platform Shelter zoom, most American homeowners opt to reduce their asking price following three months of zero offers.
According to the study, 33% of consumers will choose a price reduction, the most common option after three months. About 20 % said they would wait a month, while 17 % would wait five months. For almost 9%, it would take them a year to reconsider their pricing.
Why Should You Not Lower Your Asking Price?
If you are trying to sell your house, you should probably price it relatively high to get the best results.
Although there is no concrete answer on how much your home should sell for, a rule of thumb is to never ask below market value. Otherwise, potential buyers will think something is wrong and will lose interest.
With a significant number of listings on the market every day, it’s easy to get caught up in the hype and think you can sell your home faster and for a higher price.
It’s a very tempting proposition. It would be easier to give in and lower your asking price, but it is not a good idea.
However, a higher price may not always give better results. If you would like to sell your home quickly, price it lower than other homes in the neighborhood.
How Much Do Sellers Usually Come Down On The Asking Price Of A House?
When sellers offer a lower price to potential buyers, it is hard to be optimistic about the housing market. Yet, there are still many ways to maximize your property value.
The average seller reduces their price by 14 percent. Unfortunately, the time on the market will cause potential buyers to click past your listing and skip it without even looking.
The best way to prevent your listing from becoming stale is to lower the asking price before it reaches that stage.
Laura Barnett, a Dallas-area RE/MAX DFW real estate agent, says she usually lowers the price by $5,000 to $10,000 after two weeks on the market.
How To Know If A House Is Worth The Asking Price?
Look at comparable properties in the same neighborhood (with similar bedrooms, bathrooms, and square footage). Given its market rate, this will give you the best idea of how much a home is worth.
If there are no comparables for your property, it is essential to know the original asking price, how long it has been on the market, and any changes since it was first listed.
Here are other features to consider when deciding on your asking price:
- Amenities offered in the area.
- Cost of living- gas, groceries, entertainment, etc
- Local government projects and public construction
- Accessibility to schools, grocery stores, and work
- Shopping centers and proximity to local attractions
There Are A Few More Situations
There is nothing quite as frustrating as not selling a house after putting it on the market. You try everything right, spending considerable time and money to get more offers.
Fortunately, there are things you can do to counteract this problem. Below are some of the alternatives you can take when you are unable to sell your home.
1. Wait To Sell
While it is possible to sell a home in virtually any market, there may be a better time to sell. Maybe now is not a good time. Generally, in winter, there are fewer buyers. Spring is always the best time to sell a home.
There will be more buyers looking for a home in spring than in any other season. However, whatever downside you’re facing, waiting to sell can shift the odds in your favor. It is always wise to speak with a real estate agent to find out when the best time is.
2. Change Real Estate Agent
Sometimes the problem with selling isn’t your home. The real estate industry is like any other; some agents are better than others.
However, due to a lack of experience with your specific type of home, it is possible that even a great agent is not up to selling your home.
Changing agents can be a simple and effective way to get a different perspective and skill set involved in your sale.
3. Selling At A Lower Value Than The Market
Making an abrupt reduction can be a last resort when nothing else seems to be working. Nobody wants to sell for less than market value, but sometimes it’s the most obvious way to unlock a property.
Investors and property buyers are always looking for such deals, so you probably won’t have to wait long for a buyer if you take that step.
4. Fix, Repair, And Paint
Most potential buyers, especially if they are buying their first home, want to make a turnkey purchase without worrying about subsequent work and investment.
So make all the necessary repairs to make your home look renovated.
5. Invest In Marketing
With the volume and level of information available, people want to know everything, see everything, and even eliminate many options before seeing the property.
So, choose the best communication platforms to advertise the sale of your home. You can do this for free on Facebook or any other web platform, or with local classifieds ads paying just a small fee.
Keep in mind that timing is everything in real estate sales. Sometimes the best approach is to step back and try again at a different time. Consult me to help you overcome this problem.
Conclusion
It’s a challenge that every seller has to face in the real estate market. And very frustrating when he has to reduce the price of his house. The price is everything as far as home valuation. What type of home are you selling?
This would help to pinpoint whether your home is overpriced or worth it.
A professional real estate agent would be able to give you an accurate estimate of the current market for this property.
