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Pricing your property according to market value is the first step to a successful real estate sale. Here are a few guidelines for setting a fair and effective asking price.
Ask your broker for a CMA:
A CMA (comparative market analysis) is based on the property’s features, such as size, location, layout, as well as recent comparable sales in the same area. It’s all too common for FSBO’s to erroneously price their home according to other properties currently for sale on the market. This puts them at risk of mimicking their neighbor’s potential pricing errors- who may be asking far under or over the actual market value. Instead, asking prices need to be based on units that have recently sold. A broker will have insider access to the details of recent successful sales, such as the time on market and the sequences of price reductions.
Price according to search brackets
Once you have decided on your desired asking price, adjust it according to price endings that will cast the largest net in online searches. Most buyers search within a $25,000 bracket- for example, from $300,000 – $325,000. Round your asking price down as to fall into these brackets. For example, instead of listing at $402,0000, try listing at $399,000.
Avoid emotional bias
Though the character and design of a home can affect your asking price and the quality of offers it receives, sellers should avoid allotting too much monetary value to the personal aesthetic touches of their decor. It’s a normal psychological tendency to over-value your personal belongings: however, sellers need to acknowledge this bias and maintain objectivity when they calculate their asking price. Conferring with a trusted market professional can help set realistic values to the tangible and intangible features of your home.
Start with an unofficial estimation
Before getting into the details of your asking price, request an unofficial online estimation of your home’s value. This will give you a starting point from which to add or remove value based on the specifics of your unit.