What Price is the Right Price for Your Home?

Ready to sell your home? Pricing will be key in spurring the buyer activity you want to come through your front door. Yes, sellers, your home must be priced correctly, within market range, even in a popular real estate market.

The Triangle Multiple Listing Services reported that area home prices continued to rise through May, just over 8 percent year-to-date, with average days-on-market dropping 12 percent over data collected in April. Home sales were up 3 percent for the month of May, but inventory remains low, especially in the $400,000 range, at nearly half that of a healthy five- to six-month supply of homes.

“Though becoming more steady, it’s clear that the market continues to favor sellers and will through the summer months as buyer demand remains,” said David Jones, Coldwell Banker Howard Perry and Walston President and COO. “However, no matter the real estate market climate, it’s vital for sellers to be strategic and realistic in pricing their homes to sell quickly to avoid extra days on the market and unwanted price drops.”

The National Association of Realtors (NAR) conducted a research study to determine the correlation between home prices and buyer foot traffic. The study revealed that a correctly priced home draws 60 percent of potential buyers in that specific price point, while, a home priced 10 percent over market value may only pull half of that segment.

So, how do you find the sweet-spot price point that will attract buyers and make you the most money on your home?

Hire a Real Estate Agent

According to the 2016 National Association of Realtors Profile of Home Buyers and Sellers, nearly 90 percent of sellers used a real estate agent to sell their home.

The same survey compilation also reported that for-sale-by-owner sellers “typically sell for less than the selling price of other homes; FSBO homes sold at a median of $185,000 in 2016 (down from $210,000 in 2015), and still far lower than the median selling price of all homes at $240,000. Agent-assisted homes sold for a median of $245,000.”

“Triangle homeowners may be tempted to try selling their home on their own, but data shows that they’ll be leaving money on the table. Not only do real estate agents have the insight into the market range of the homes they list, but they are also able to sell them more quickly to more qualified buyers,” explained Jones.

Benefits of Agent Expertise

A professional real estate agent will assist you from “for sale” to “sold.”

From determining the true market range for your home and marketing it across numerous channels to representing your best interests during negotiations and unforeseen issues that may arise, an agent can chart your course through the home buying process.

Determining the Value of Your Home

Home valuation websites will offer up automated price estimates for your home with a few mouse clicks, but all too often those values are skewed by misinformation or lack of local market intelligence. It’s only when the information returned is paired with an expert real estate agent’s analysis that a true price range for your home can be determined.

A local Realtor will conduct a thorough Competitive Market Analysis, most often referred to as a CMA, to determine the value range for your home. This analysis will include:

  • an assessment of your home and property, including upgrades and renovations
  • research into comparable homes (comps) in the area to gain knowledge about recently closed homes and corresponding sales prices, terms and conditions, e.g. premiums, discounts, etc.
  • research into competing listings within your neighborhood and the surrounding community
  • consideration of any contingencies that you may set, e.g. a delayed closing date 
Picking the Right Price

Once your CMA is complete, your real estate agent will present his or her findings and expert insight into the market range for your home. You’ll also be able to speak with your agent about what, if any, allowances or incentives you may want to consider as part of your home sale. This key information will allow you to make an educated decision on the sales price for your home. 

“Our Coldwell Banker Howard Perry and Walston agents are immersed in their local marketplace, they know the real estate scene inside and out,” added Jones. “You can be assured that they are well prepared to lead you to sales success by helping you set the right price for your home and marketing it to the right buyers.”

Finding an Expert Real Estate Agent

Selecting the right real estate agent to trust with your home sale is important. You’ll want a professional who has had previous success in your neighborhood or community, has earned positive reviews and references from past clients, and someone who suits you and your family.

Ask your family, friends, and neighbors for recommendations or search online for some area real estate agents who serve your community. Once you establish a list of three to five, start narrowing it down with research. From there, conduct in-person interviews to learn more about each agent and discuss his or her strategy for how to sell your home.

Schedule a Home Appraisal

Not ready to speak with an agent yet, but still want to get a more accurate idea of your home’s worth? Have your home appraised.

A professional home appraiser will inspect your home from top to bottom, inside and out to determine its condition and features and consider its location. This information paired with further research into the area and the state of the market will allow an appraiser to offer an unbiased opinion of your home’s true value.

 Learn more about Coldwell Banker Howard Perry and Walston and the cities and towns our leading real estate team serves.

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