Pricing Your Home

price-home.pngSelling your home is a complex process and the most difficult part is pricing your home properly. If your home is in the Middle TN real estate market, you need to price your home accordingly. That’s why it is important that you do your research properly.
Pricing a home help in determining multiple factors such as:
• How it will attract the buyers
• How quick the purchase will happen
• How it will eventually help you in achieving your financial goals
The first step while pricing a home is to come up with a listing price, which helps in determining the entire road map of the transaction. It is very important to create a comparable report with the help of your real estate agent where you will look at the homes that are sold, pending, not sold and active (currently on the market) in the neighborhood.
This report is commonly known as Comparative Market Analysis (CMA). The report has all the information about what kind of neighborhood your home is in, mortgage funds conditions, real estate market condition and other important features of the area such as schools, parks, communities, retails etc. This report will eventually help you come up with a listing price that is authentic and workable.
You need to put yourself in a buyer’s shoes in an ideal condition. A buyer is basically looking for the location of the property, the year it was built, condition, style and the price. That’s why; you need to look at the market and buyer’s needs and demands and then come up with a price, which suits both. But make sure that you are keeping an eye on the market condition all the time, otherwise you might price your home too high because you think it’s worthy enough.
Some important factors that could help you to come up with an ideal price are:
The worth of other properties in the neighborhood. For example, if you are in the Middle TN real estate market, you need to figure out how other homes are priced. Your real estate agent will help you with that by looking at the Multiple Listing Service (MLS) and finding out the details about other properties.
Your selling time will also help you in figuring out your listing price. If you are willing to sell your home soon, your price needs to be competitive.
Another important factor is to look at buyers’ willingness. You need to check out what a buyer is willing to spend to buy a home. A buyer simply compares your property with others in the neighborhood. If your property is fairly priced and offers some competitive edge such as new paint or granite counter tops, they will be more interested in buying yours.
Overpricing a home is also a major turn off. If your realtor is advising you to price your home high, you need to think about finding a new one. Statistical data shows that the buyers usually buy homes that are priced reasonably. Overpriced homes also help in selling other homes in the neighborhood faster.