Determining How Much Home is Worth
When listing your home for sale with a real estate agent, they will help you determine how much your house is worth and which listing price strategy would be best for you. The amount that your home is worth is calculated by examining recent relevant home sales. Your agent will then search for homes in the same area as yours with similar features that were sold in the last 6-12 months called comparable sales. They will take into account the prices these homes were sold for and help narrow down a price range for your specific home.
Determining Listing Price
Now that you know what your home is worth, it is time to decide your home’s listing price. Most sellers’ first instinct is to list their home at a higher price because they believe that buyers will attempt to negotiate the price down especially if the home is above market value. Buyers will not pay for a home priced above market value and if a home is priced too high it can cause potential buyers to lose interest. Besides, the sale will likely include a mortgage that will require an appraisal and appraisers will not let homes be sold for more than they are worth.
Most realtors prefer the strategy of pricing homes below market value as a method to attract more potential buyers and show them you are motivated to sell. Home purchases are made on emotion which is not likely to occur via photos on a website or a virtual tour. When listing your home at a lower price, you are encouraging buyers to visit, to recognize the value of your home and fall in love with it.
Struggling to Sell?
Usually when a seller is getting little to no interest in their home, it may be an indication that the home is overpriced. By choosing not to tour your home, it could be a prospective buyer’s way of saying they are not willing to pay that price. Sellers are usually not willing to reduce their price at first, but eventually realize it is in their best interest to do so for getting their home sold.
When you decide it is the right time to sell your house in Hampton Roads, choosing an accurate listing price is crucial. By listing your Hampton Roads home with a fixed rate realtor such as RedefyFlatFee, they will help you sell your home for a flat rate of $5,500 no matter the sale price. This guarantees sellers have a full understanding of the costs involved as well as help them preserve their equity. Learn more about the benefits of partnering with a flat rate real estate agent and schedule an in-home consultation now or check out our podcast for more details on finding the right price for your home.