When it comes to selling a house, there are a lot of variables involved like hiring a realtor, getting your home ready to show, and pricing it right. When it comes to pricing, there are certain strategies to follow. In 2022, there are some go-to house pricing strategies that real estate agents are talking about.
Start with a free home value estimate
Before you even hire a realtor, you can get a sense of how much your home might sell for, with a free home value estimate. This can start getting you thinking about the process and get a basic understanding of where your home stands on the market. A tool like HomeLight’s Home Value Estimator can help you see how your home might price. You’ll need to answer questions about the condition of your home, the number of bedrooms, and the year it was built. The online tool will then use public data to estimate your home’s value.
Compare your home with the competition
Another way to estimate the value of your home is by comparing it to other similar homes in the area. Agents use what’s called a comparative market analysis (CMA), to put your home side-by-side with other recently-sold homes that are similar in location, size, and quality. With this data, you can see market trends with a map of listings similar to your home. This will help find your home’s target sale price as you consult with your realtor.
Use the pricing pyramid
Real estate agents use a pricing pyramid to compare the relationship between your home’s asking price and the percentage of buyers who might be interested in your home. The higher your home is priced above the market value, the smaller your pool of potential buyers will be. For example, if you price your home 10 or 15 percent below market value, you might open up your buyer pool to 75 or 90 percent of buyers. If you price above market value, your pool might go down to 10 percent. Generally, sellers aim for attracting about 60 percent of active buyers.
Take online pricing into consideration
It is said that 95 percent of buyers use online tools to look for their next home, and setting your home’s price in line with online home search filters can help your home to show up more often in searches. For example, many online real estate sites set price filters for $25,000 increments, which means that you might consider following this with your pricing, to show up within the budgets that homeowners are looking for.
Pay attention to seasonal shifts
Spring is generally considered to be the peak real estate season, but this can also vary depending on where you live. If you have some flexibility with when you can sell your home, then it can be wise to discuss the market with your agent and see when might be the optimal time to sell.
If you want to sell your home fast, a cash buyer can be the way to go. However, a cash sale will generally bring home less than a traditional sale. If you’re curious to see if pricing your home to sell for cash might be an option given your selling strategy, then HomeLight’s SimpleSale platform might be the answer. With so many variables involved in pricing a home, a professional real estate agent is your best guide in finding the pricing strategy solution that’s right for you.