CHAPTER 5:
A breakdown of the factors that influence home prices, and how to arrive at the right asking price for your home
Setting the right price for your home is crucial to the success of your sale. Price it too high, and you risk turning off potential buyers. Price it too low, and you risk leaving money on the table. Your pricing strategy should always coordinate with your goals of selling your home.
There are multiple pricing strategies that sellers can take depending on what their goals are. For example, for a seller who is hoping to receive multiple offers, we recommend positioning the home right below market value with the intention of driving the price up. For a more unique property with a smaller buyer pool, it makes sense to leave a little bit of negotiation room and price it slightly above the market value.
Pricing strategies are never one size fits all. Market conditions, the seller’s goals, and property conditions are a few factors to consider when deciding on price.
In this step, we’ll provide you with a breakdown of the factors that influence home prices and how to arrive at the right asking price for your home.
CURRENT MARKET CONDITIONS
One of the most important factors to consider when pricing your home is your local real estate market conditions. If it’s a seller’s market, you may be able to set a higher asking price than you would in a buyer’s market. Pay attention to local trends and the number of homes available in your area to get a better sense of the market conditions.
SEASONALITY
In Greater Cleveland, Akron, and Canton’s real estate market, we historically have seen the most amount of sales take place during the spring market season. Sometimes, that will impact the pricing strategy that we recommend to homeowners who are considering selling their homes.
location
Location is another key factor that can influence the price of your home. Homes in desirable neighborhoods or with easy access to amenities may command a higher price than those in less desirable areas. Consider the location of your home and how it might impact the asking price.
size and specifications
Bigger does not always mean better. While the size and specs of your home can also influence the price, it does not always dictate what the price will be. Price per square foot has always been a measurement that most people use to determine value, but sometimes it does not tell the whole story.
condition of home
In any market, the condition of your home significantly impacts the value. Homes that are in excellent condition and require minimal repairs may command a higher price than those that need a lot of work. Especially in high-interest rate markets, buyers would rather buy a “move-in ready” home that requires further upfront improvements.
comparable sales
Finally, it’s important to look at comparable sales in your area to get a better sense of what similar homes are selling for. At the Young Team, our agents are trained to create very detailed Comparative Market Analysis “CMA’s” before and after every listing consultation.
By taking all of these factors into consideration, you’ll be able to arrive at the right asking price for your home.
If you want to get an idea of what your home value is in just seconds, click HERE
In the next chapter, we’ll talk about marketing your home and how to get it in front of potential buyers.