When listing your home for sale, one of the biggest decisions you'll need to make is the price to initially list it at. If it's too high, you'll waste time since it is out of your local buyer's price range. If it's too low, you'll end up losing money on the deal in exchange for a quick sale. Buyers are going to compare it to nearby homes when they do their searches online, so you know what your competition is. So how do you ensure that your home is priced correctly when compared to the other homes out there? Consider these 3 things.
Do a True Comparative Market Analysis
If you are going to compare your home to nearby homes, you have to do a true comparative market analysis. It goes beyond just looking at the homes in the surrounding area, since you have to look the features and construction of the home. This means going through historical sales data to find homes that are as similar to yours as possible. This includes the construction material, square footage, bathrooms, bedrooms, and even the approximate location in your city. Once you find several homes that would be comparable, see how your price compares. This will give you a great idea about what you can expect to get for your home.
Consider The Part of Town
Other homes may be in the same city, but they are not equal. You'll want to be familiar with the town and everything it can offer to a potential buyer, or how that part of town could be a detriment and driving a sales price lower. For instance, being on a busy street without street parking could easily make a home cost less than one a few streets back with a more suburban feel. Crime rates, school district, proximity to the police department, and even street lights all make a big difference.
Talk With A Realtor
One thing you may not be able to figure out are trends in the housing market, and that's where a realtor can help. They may know that buyers in your area are starting to value some home features more than others, and are willing to pay more for it. They will let you know if you can justify having a higher sales price for having something like solar panels or other environmentally conscious features, or if buyers simply do not care for them in your area.