The price of a home has so many variables – the condition of the house, the foundation, the neighborhood, the market – it all changes how you’ll price your home.
When selling your home here in Dallas, or in any other place in the United States, you will obviously want to get a great price for it, especially if the home has any memories attached to it or if you’ve sunk a lot of money into renovations. However, you need to be able to price it at a point that is just attractive enough to fetch the right offer.
If you price too high, it’ll stay on the market and could increase your costs. If you price too low, you’re going to leave money on the table. What to do?
There are proven methods and strategies we would like to share in this article. Keep reading to learn how to set your asking price.
Knowing Your Local Housing Market
Do some research and find out what comparable homes are selling for in your area. Unless you live in a development, it may be a bit difficult to use the exact price of other homes to set your own.
You can use your best judgment to see what you think your house is worth in comparison to when it was purchased.
Take a look at seasonal trends, and if you have the time, list your house at a time of year when prices are typically higher. Look up homes that are actively listed on the MLS, Zillow, and for sale by owner sites.
Take note of how long the properties have been listed. If a home has been on the market for a while, it is likely priced too high. The basic economic rule of supply and demand is pretty accurate when it comes to homes – if there are a lot of houses in your area that are currently for sale, you may not be able to price as high. If you live in an area with high demand but low current housing opportunities, you may be able to price much higher.
In addition, you can ask a couple of realtors for a more detailed CMA. (Comparative Market Analysis.) Many realtors will offer this free of charge, as a marketing technique. Requesting a CMA should not put you under any obligation to the realtor. Who knows, they might even have a buyer for you.
Be Realistic With Your Expectations
You might have a price in your head of what you want to get for the home, but make sure this price is realistic. Buyers are savvy, and depending on your market, they may have a number of options.
They want to get a good deal and find a value just as much as you want to get a good price for your house. The trick is to find that sweet spot. You don’t want to price your home too high and have to make multiple cuts to the price.
These price drops will show on the MLS, and repetitive price changes can make you look desperate or indicate that something may be wrong with the house. A good rule of thumb is to allow for only one price drop if absolutely necessary.
To make sure your asking price is based in reality, it might be beneficial to have a professional appraisal done.
Ask Opinions From Professionals and Locals
In addition to asking realtors for a detailed CMA, you can also ask friends, neighbors, and family. Ask for their opinion and see what they would pay for a home like yours.
Getting multiple opinions from a variety of people can help you find a middle ground as well as help you find additional selling points you may have overlooked.
There Can Be More To It Than Just The Final Sale Price
Maybe you can offer a lower price for the home, however, the buyer has to pay the closing costs. Or maybe you can get your asking price, so long as the furniture comes with the house.
You do have some bargaining power when finding the sweet, sale price for your home. With some clever strategy, you will be able to find a price that works for all parties.
Ways to Increase Selling Price
Playing the market is a big part of selling real estate, but for people who live in and own only one home, this might not be as plausible as people with multiple properties. You might not be able to wait around for the market to give you a few extra thousand dollars on your asking price.
Some people turn to renovations to increase their selling price, but often the cost of renovation is higher than the price increase you can add to your property.
Don’t be too optimistic with renovations – we suggest you only do make improvements to damages that may keep the house on the market for too long or might make you fail inspections.
One of the big ways to increase profits is to decrease your costs of sale and moving. This means limiting your time from market to sale, decreasing your reinvestments in the property, and limiting your real estate costs.
The Costs of Selling Your Home
When you go to sell the house, here are the costs you’re going to expect:
Agent commissions will typically run about 6% of the final sale price of the home. You will know the agent’s cut when you sign your listing agreement. While this money isn’t paid up front, it is deducted from the amount you walk away with. Keep this in mind when pricing your home.
Agent fees will depend on the agency, there might be additional fees charged throughout the selling process. Some agents will pass on marketing and listing fees directly to their clients. Make sure you know what’s included and what you will have to pay for when all is said and done.
Closing costs include many items that are paid at the closing table. These include transfer fees, title insurance, title search fees, recording fees, transfer taxes, appraisal costs, discount points, credit report fees and more. Expect to pay about 2% of the final sale price in closing costs.
You’re still responsible for taxes when you list your home for sale. You are responsible for the property taxes, utilities and homeowners insurance up until the day of closing. These amounts can add up to thousands should it take a few months for the property to sell and close. So once you decide to sell, speed of the sale becomes a detriment to your bottom line.
Preparing Your House for The Market – There is a lot of energy, time and money that go into getting a house ready to sell. There are repairs to make, walls to paint and carpets to clean. You will want to remove personal belongings and stage the home for selling. Whether you work with a professional or do it on your own, you are likely to spend money on new decorative pieces in the house. You should also clean up the yard. If you can find cost-effective options, consider some new landscaping to bring more curb appeal to the property.
While it certainly isn’t required, more and more sellers are paying to have their home’s inspected before listing them. This will cost approximately $200 and up. By doing an inspection before you list, you will be able to address any issues with the home before thy pop up in your buyer’s inspection. This will also give you negotiating power during the selling process.
While moving isn’t technically a selling cost, it is a large expense you will have to make once the house closes (if you haven’t done so already.) Whether you hire movers or do it yourself, moving can get expensive! How far are you going? Will you need a truck? Moving trucks, even if you drive yourself, can cost thousands.
You will also want to consider storage costs. If you are living in the home while waiting for it to sell, packing up unnecessary items ahead of time will make the house look nicer and give you an edge when it’s time to move.
Calculating Time, Energy, Profits & Value for Selling a Home
If it’s looking like your house could be on the market for months, especially if you’re moving away from the area, it may make sense to sell to a homebuyer. Do your research on your selling options, based on your neighborhood, situation, financial needs, and expectations.
It’s always been said that time equals money, and in today’s lifestyle and expectations from the business world, promptness is important. If you’re in a position to be able to wait for the right offer, you’ll be able to price your home well and not leave much money on the table. Others may need to sell their house immediately. For most, it’s somewhere in between.
If you’re curious about what your home could sell for if you sold to a homebuyer, get a quote from one Dallas’ top-rated homebuyers, Metroplex Homebuyers. We can get you a cash-offer same-day.