How to price your home for sale?

The price of a property is a crucial factor that influences homebuying decisions. A property owner looking to sell his house must consider several factors when determining the price. While overpricing may not attract buyers, on the other hand, pricing a property too low may not give you a sound return on investment.

With some research and effort, you can arrive at the final price that allows you to make profits from the investment. Setting the correct price for your property attracts eligible buyers. In this article, we will explain the ways by which you can establish the right price for your property.

See also: Tips to increase the value of your property

Conduct a Comparative Market Analysis (CMA)

Compare the final selling price and listing price of similar properties in your area. You can hire a professional to perform a Comparative Market Analysis (CMA), a detailed report comparing your property to similar properties in the same location.

This is done by considering aspects, such as property size, age, condition and features of the home. A real estate expert has access to multiple listing service (MLS) data, enabling them to provide a comprehensive CMA.

Visit similar properties in your area

Visiting similar properties for sale in your neighbourhood to get a clear picture of the market. Check how these houses are staged, their condition and listed prices to get useful insights in positioning your property in the market. Make sure the properties are of a similar configuration, type, age, and size (e.g. 1 BHK or 2 BHK, builder floors, or high rise, five years or 10 years, and area in square foot).

Analyse how the property compares to the marketplace

Every house may have some unique features or upgrades that is not present in other properties. For example, a newly renovated kitchen, a spacious lawn or a basement can add value to your property. Consider these points when determining the price. One may have to consider the expenses of any repairs or updates required as that can impact the selling price.

Meet brokers

Connect with local brokers to get feedback on your property before it is officially placed in the market. Real estate agents can share useful insights into how the property is seen in the market and suggest improvements. They can even support the initial pricing.

Price your property strategically

Setting the right price for a property can significantly influence how quickly it is sold. A high price can deter prospective buyers, while pricing it too low may fetch lesser returns. One must follow a strategic approach while pricing based on a thorough local market analysis.

Consider essential variables

Consider variables that can impact property prices, such as the neighbourhood, approach area, property age, amenities (car parking, swimming pool, etc.), premium features (east-facing, top-floor, modular kitchen, etc.), connectivity (Is it towards the centre of the city or the periphery?), proximity to employment hubs and social infrastructure (schools, hospitals, etc. in the vicinity).

Analyse economic situation

Analysing the broader economic situation and the city-level real estate scenario, especially the residential market, can help you make the right decision in terms of pricing your property.

Factors to consider when pricing property for sale

• Assess recent comparable sales: Analyse properties prices similar to those of competitors that have recently sold in your area.
• Consider unique features of property: A house that requires less renovation or upgrade appeals to buyers. The fixtures and finishes in your property can provide significant value.
• Utilise agent’s expertise: An experienced real estate agent can provide valuable insights into the current market conditions and preferences of potential buyers.
• Understand market conditions: Factors such as interest rates, economic indicators, and the number of properties for sale in your area should be considered when pricing your property.

Tips to consider when pricing your home for sale

• Keep emotions away from the equation: While selling a house can be an emotional decision for some, it can impact your decision to set a price for your property objectively. One must assess the property value in an unbiased manner to arrive at a realistic price.
• Be open to change: If you set the property price too high but do not get the response you had expected, you may have to reassess and reset the price to match the demand.
• Consult brokers: Hiring a real estate broker for the deal can help you set the right price. You can also consider a professional property appraisal done to get an accurate estimate.
• Look up for prices online: Many buyers look for properties within their preferred price range by looking up on online real estate portals. Find out how much your property could be sold.
• Be ready for negotiations: Buyers are often open to negotiating property price. When determining an initial asking price, note that buyers can make a lower offer than you asked It is necessary to strike a balance with a reasonable asking price and keep some room for negotiations.

How to attract potential buyers for your property?

• Initiate targeted social media campaigns: Social media sites such as Facebook, Instagram and Twitter can help you target demographics according to factors, such as age, geography, etc., and attract prospective buyers.
• List property online: Visit online platforms and list your property, which will be beneficial in finding genuine buyers for your property.
• Improve listings with paid advertisements: Campaigns for paid advertising on sites such as Facebook Ads or Google AdWords can increase the exposure of your property listings. These helps attract the right buyers based on demographics or keywords.
• Connect with social media groups and communities: Sellers can join social media communities and groups to network with sellers and buyers, get knowledge of the market and advertise your listings.
• Network with real estate agents: Networking with real estate agents can help you get valuable leads.
• Distribute mailers in high-renter areas: Sending mailers with information about your property in areas with several renters can help generate buyers’ interest.
• Develop content marketing strategies: Creating educational information around your listings through blog posts, videos, infographics, etc.
• Host social events: Organise holiday parties, networking events, or get-togethers to allow prospective buyers to view your property.

Housing.com News Viewpoint

Pricing a property requires a strategic approach and careful consideration of factors, such as market trends and unique features of a property. This helps attract the right buyers and get the best property deal. One must consider listing their properties on online platforms to find genuine buyers.

FAQs