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Here are 5 tips on pricing a home according to fair market value.
Use the right comparables:
A common mistake made by many sellers is pricing their home based solely on other active sales in the same building or street. Doing so puts them at risk of mimicking their neighbour’s potential pricing errors. Instead, asking prices should be based on similar units that successfully and recently sold in the same building or on the same street. The most relevant comparable units to look at are the ones that have sold within the past 12 months.
Use psychological pricing
Once you have decided on a basic price range, think about those price endings that will capture the highest bracket of buyer searches. For example, if you have a target figure of $510,000 in mind, think about setting it at $499,000. This way, your property will show up to buyers looking in the $200,000-500,00 range Keep in mind that most buyers search within a 25k bracket, i.e. 450-475k , 475-499k, etc..
Take seasonality into consideration
Timing is essential when it comes to pricing a home. Spring is generally the easiest time to sell, since many buyers aim to coordinate their purchases with Quebec’s July 1 moving day- but it’s also when competition is at its peak. Winter can be a good time to test out a higher price, while summer sales require pricing that is at market vale.
Execute a Comparative Market Analysis (CMA)
If you’re working with an broker, they will provide you with a comparative market analysis which includes recent sales and days on the market. The other factors that are taken into consideration while drafting a CMA are floor height, amenities in the building, square footage, the building’s age, view, location, and quality of the finishings
Avoid emotional bias
Design plays a part towards the final asking price of a home. The aesthetic touches of the paint, finishings and extra renovations can increase the appeal of a unit and set it apart from other similar units in the building. However, sellers should avoid exaggerating the value of their personal possessions, to avoid unnecessary delays in the sales process.