How to Price Your Home

When it comes to selling your home, getting the price right is everything, and it can feel like a daunting process. Set the price too high, and you risk discouraging potential buyers; set it too low, and you may miss out on valuable returns. In this blog, you’ll learn about the tools and strategies that can help you find the perfect price for your home—one that is both competitive and attractive to buyers!

Comparative Market Analysis (CMA)

Ever wondered how Real Estate agents determine their clients' home prices? It’s not as simple as spinning a guessing wheel—though that would be fun! The process involves more calculations and thoughtful analysis. We begin by looking at homes similar to yours in your neighborhood that have sold within the last six months. While we aim to find three or four comparable properties, remember that no two homes are the same. This is where the math comes in. We assign a value to different features of your home. For example, if your property has an extra bedroom that a comparable home doesn’t, we’ll add the value of that bedroom to the comparable home to align it with your specifications. We can apply this method to basements, garages, living spaces, and property size. By calculating and comparing your property this way, we arrive at an accurate, competitive price for your home based on the surrounding listings.

What If My House Doesn’t Sell?

This is a common concern we hear from clients, and it’s a valid question. The answer often depends on your unique situation. One option is to maintain your current price, acknowledging that it might take longer to sell. Eventually, if priced competitively, the home will attract buyers. Another approach is to gradually lower the price over time—say, by reducing it by $2,000 every two weeks—until you start to see some interest.  Like stated in the beginning of this section it all depends on your situation. If you are not in a rush to sell your home you might want to wait to see if you can maximize your returns. If you are in more of a hurry and need the funds to purchase your next home you can start the process of slowly lowering the price. 

Overall, the listing process can be challenging. It’s natural to feel attached to your home and believe it might be worth more than the market suggests. The key is to remain open to feedback and leverage the evidence provided by a Comparative Market Analysis (CMA). This data-driven approach will guide you in setting a price that reflects your home’s true value in the current market.