Much thought needs to go into choosing the asking price. You don’t want to go too low and miss out on money but list it too high and you’ll turn off buyers who may not even bother reaching out to negotiate.
Hiring a home appraiser
The first and perhaps most useful step in determining the asking price of your house is to hire a professional home appraiser. This will give you an unbiased snapshot of what your house is actually worth.
During the appraisal, the appraiser will go through the house as well as look at the neighborhood it’s located in and market trends to determine the price.
If you’re planning on making repairs or improvements to the house to increase the appeal, hiring an appraiser afterward is best.
After the visit, the appraiser will produce a report that lets you know the worth of the house and why.
Looking at “comps”
After you have an educated guess as to the worth of your house, it’s time to research comparable properties, or “comps.” You might not find your house’s twin out there on the market. However, there are several things to consider.
Comps are houses with a similar:
- Location
- Square footage
- Age and condition
- Upgrades
- Bonuses like swimming pools and garages
Buyers and real estate agents search for houses that check the boxes. As such, if your asking price is far higher than other comparable houses, you’ll be out of the running.
The Balance suggests asking your agent to create a comparative market analysis, which can help you craft an appropriate asking price. This will look at homes within a half mile of your property that sold within the last six months.
Taking algorithms into account
When going through home sale websites, you might find some oddly priced houses, like $499,999. There is a strategy behind it! If a prospective buyer sets the search bar for only houses below $500,000, listings above that won’t show up. Zillow notes that — in our minds — numbers just below a round, even number are more appealing than even numbers (think $499,999 instead of $500,000).
You also don’t want to get lumped in too close to competitors. By pricing it in a different bracket, either slightly lower or higher, you’ll stand out from the crowd.
Updating your asking price
What if your listing expires and the house still hasn’t sold?
A problem could be that the asking price just isn’t right. Maybe it’s too high or it’s getting lost in a flurry of listings in your area.
Talk to your real estate agent to come up with a plan to refresh the listing, including changing the price, updating the description, retaking photos, or making updates and repairs that have deterred interested buyers.
How Meridian Trust comes up with quotes
Homebuying companies like Meridian Trust take the stress out of finding that “magic number” for your asking price.
When you call us, you’re connected with a licensed real estate agent who will discuss your situation and needs with you. Based on your answers, our experienced agents will complete a property value analysis within minutes.
After they do, they’ll share the no-obligation cash offer with you and explain how they arrived at that number. They’ll also share some of the unique benefits of selling your house for cash.
Of course, we’ll also give you time to think it over. Should you accept, a contract will be sent over by email or overnight express delivery.
Meridian Trust has more than 15 years of experience purchasing thousands of homes in Florida, Georgia, and Alabama — in every condition you can imagine.
To get a free, no-obligation quote, call Meridian Trust at (954) 807-9087.
Note: This guide is for informational purposes only. Meridian Trust does not make any guarantees about the sufficiency of the content in or linked to from this blog post or that it is compliant with current law. The content within this blog post is not a substitute for legal advice or legal services. You should not rely on this information for any purpose without consulting a licensed lawyer in your area.
