Pricing your home to sell is a tricky game. You know what you’ve invested and you hope for a generous return on your investment. You have a future in mind and you’d like to use proceeds from the sale of your house to obtain your goals. And you’ve made a lot of memories within those walls. But guess work will not get you there. Here are a few things to think about when pricing your home to sell.
Location matters, but there’s not much you can do about it.
Your house is where your house is, for better or for worse. Your neighborhood can either add value to your home, or subtract. Inform your neighbors that you’re going to be selling. Let them know their friends and family may have first grabs at the house, and see if you can encourage a community spirit of cleanliness. To enhance the are of your house so you may garner a higher price, consider having on hand a printed list of all the features in your area, such as parks, restaurants, spas, shopping centers, golf courses, schools, or other features potential buyers may find enticing. Perceived value is different from fair market value, but with a bit of foresight and effort, you could create a win/win situation where perceived value escalates the fair market value.
Sentiment only holds value for you, not the buyers.
Making memories is part of home ownership. It’s natural for you to find it difficult to part with your past. Your memories are extremely valuable, but not to your buyers. Buyers aren’t concerned with who grew up in the house, how many holidays were celebrated there, or how many tears, or how much laughter. To the buyer, all they can see is their own potential future, with no ties to your past. In the world of real estate, it’s just a house. In order to price it properly, you must detach from the sentiment.
It is what it is: more or less.
It would be wonderful if houses increased in value over time. Like wine, or cheese, or fine art. But real estate doesn’t confine itself to such parameters. Fair market value is ever-changing, so it’s difficult to know if your house is worth more than you paid, or less. It could go either way. Talk with your real estate agent. Get and discuss a CMA – a Comprehensive Market Analysis. A CMA will provide you with a list of houses in your neighborhood, similar to yours in size and stature, that have recently sold. Asking price and selling price are two different animals, not to be confused with one another. Asking price is what the seller hopes to receive. Selling price is what the buyer was actually willing to pay. In some cases, that’s a huge difference. And if you over-price your house, it could sit on the market for long periods of time and experience several frustrating reductions. Your real estate agent will guide you in the pricing of your property.
Time to Play the Staging Game
Remember when we talked about perceived value? This is another opportunity for you to influence that variable in your favor. It all begins with curb appeal, and then flows into the living space. Start from the outside and work your way in. Go across the street, then look at your house as if you’ve never lived in it. What do you see? Overgrown grass? Dull paint? Toys in the yard? Rickety fence? Boring porch? This is your chance to really woo your potential buyers and have them fall in love with your house at first sight. Clean inside, top to bottom. Make everything look and feel warm and fresh and inviting. Warm cookies. Lit candles. Fresh flowers. Open spaces. Spacious counter tops. This is your chance to dress your house in its Sunday best. Perceived value packs a powerful punch and when your house is properly staged, your practically guaranteed more bang for your buck.
Show Me the Papers!
Certain documentation can add value to your house. A C.L.U.E. report can give buyers confidence by seeing there haven’t been insurance claims against the property. A home warranty can convince buyers there’s help when they need it. Find any documentation that can add perceived value to your home.
With a bit of prep in advance and trust in your real estate agent, you can properly price your home to guarantee you the best return on your investment available in today’s market. Give Team Douglas a call today at 951-529-9159 to discuss the home selling process.