When trying to decide on a listing price for your home, the best approach is to study what is currently on the market and put yourself in the “buyer’s shoes”. Identify what your home has to offer when compared to other similar properties within the same price range. Some aspects to consider include:
- Size of Home (Square Feet)
- Size of Yard or Lot
- Number of Bedrooms
- Number of Full & Half Bathrooms
- Number of Living and Dining Areas
- Other Rooms (i.e. Hobby Room, Play Rooms, Media Rooms, etc.)
- Overall Quality of Finishes (i.e. wall finishes, counter-tops, hardware, detailing, etc.)
- Kitchen Finishes and Appliance Quality
- Other Amenities (i.e. pool, security systems, energy efficiency, insulation, etc.)
After comparing the features of your home to the features offered by competing homes, ask yourself this question: “Is my home a bargain for buyers at this price?”. I am not advocating that you price your home below market. It is my goal to sell your home for the highest price possible. However, it should be no surprise that there is a direct relationship between the number of buyers who will look at your home and the price at which it is listed. Take a look at the following chart:
There is also a direct relationship between the listing price and the estimated amount of time it takes to sell your home. The “average time on market” for similar homes can give you a good understanding of timing vs. price. We provide you with this information when listing your home.
Price Range vs. Market Size
Although each market areas has its own specific dynamics, in most cases, the price range of your home will determine the size of the pool of potential buyers. Simply put, there are generally more buyers for less expensive, more affordable homes. Also, the higher a home’s price, the longer it will take to sell. Consider the following chart:
Be mindful of a couple of caveats. The largest part of the pool, for the least expensive homes, shrinks significantly as some would-be home buyers will find it difficult to obtain financing to purchase a home. Also, in areas with a heavy concentration of employment centers, the pool expands within a narrow price range to meet the housing demands of new or relocated employees.
When listing your home with us, you will receive a market analysis for your home which will help you understand the market dynamics in your area. It will identify the average sales price for comparable homes in your neighborhood and the average asking price for competing homes. It will also identify the average time comparable homes remain on the market before a sale occurs. This important information will help you decide where to price your home in order to achieve your goals.
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