How to Price your Home for the 2023 Spring/Summer Market
Pricing your home in today’s real estate market requires more than just looking at comparable homes and making price adjustments based on square footage, layout, and upgrades. While these factors are still part of the equation, you need the expertise of a market expert to interpret much more. According to Matt Healy at the Pomerleau team, when pricing homes, it’s a four-part equation.
The first part of the equation is comparable homes, which account for 25% of the total. The second part is what the current competition is doing, which also accounts for 25%. To better explain this, imagine it’s the day of the big game, and you have 25 people coming over, but your TV breaks. You go to the local electronics store, and they only have one TV left, but there are 10 other people all wanting the TV. How much is that TV now worth? Much more than past comps or sales.
The third part of the equation is your agent’s experienced “feeling” on how many active buyers are looking for your home, which also accounts for 25%. Finally, the last 25% is the client’s goals and timing. This part is better explained by discussing the three pricing options.
The first pricing option is to price the home above market value. This usually equates to more time on the market and looking for the “unicorn” buyer – someone who absolutely needs your home at any cost.
The second pricing option is to price it at market value. This is where you typically follow the area’s average days on the market and average sales prices.
The last pricing option is to price your home below market value in an effort to create a bidding war and let the buyers fight over your home.
In today’s market, it’s crucial to have an experienced agent who can help you navigate these pricing options and find the sweet spot that will get you the most money in the shortest amount of time. Remember, the right price can mean the difference between a quick sale and a long, drawn-out process.
Find your home’s instant value at www.pomerleauteam.com