When selling your home, the biggest question you’re going to be asked is, “how much?”. How you price your home determines how fast the house sells. Too high and it sits on the market, too low and you risk cheating yourself out of valuable equity. Hitting that sweet spot is tricky, but well worth the effort.
Price your neighborhood
Compare compare compare!
Use websites like Zillow and Realtor.com as a starting point. Make sure you’re looking specifically at your neighborhood, and get some information about the other houses. If your home is a three bedroom the market value of other three bedrooms can give you a good idea of what people are willing to spend. Spend some time and compare lot sizes, house sizes, and all the different variables that your house has that can increase the value.
Now that you’ve got your price range, it’s time to get a bit more specific on the list price. Over the years there has been a lot of research done on how consumers perceive the things they’re looking to buy. One of the things from this research is the idea that things priced ending in “99” or “95” are more accessible than their “00” ending counterparts. If you want to list your house for $200,000, try instead listing it for 199,000. Something about the “$199” looks and feels much more accessible than the flat “$200.”
Also, consider rounding down to the lower end of your price range. Pricing at the lower end of your ideal price range can encourage multiple offers, which puts you in a better position and potentially getting a better price on your house.
Factor in Closing Costs
When pricing you also need to keep in mind the closing costs. You will still have some closing costs to cover, as well as paying the commission for the real estate agents. When deciding how much to list your house for, do not forget these costs need to be considered when making your list price.
Speaking of Closing…
Georgia Law requires a real estate attorney be present at closing to ensure everything is legal and fair. At Frank B. Pallotta Law we are licensed Real Estate Lawyers with 20 years of experience helping our clients in Georgia navigate the closing process. Reach out to us with your questions.