Coming up with the right price to list your home is daunting.
- It’s not a fixed number, or what we might expect to get for it – it’s not the number we need to make to break even on renovations or to what you need to buy our next home.
- It’s not what a neighbor got for hers last week or last year, it’s not what one of the property listing sites estimates you could fetch.
- It’s not the appraisal value of your home, either, which is a doozy to digest – and why wouldn’t it be?
If our homes are so unique — and we’ve put so much great care, time and investment into improvements, etc. why can’t we ask for the number that represents that?
I mean, you CAN — you can end up pricing your home however you like, at the end of the day. It is the homeowner’s choice — but, if the end goal is to sell your home, with the expectation that someone will pay X amount for it, and in a reasonable amount of time — this often falls into the strategy philosophy camp I like to refer to art and science.
The science is data – what’s for sale right now that compares to your property? What similar homes have sold in the last 3, 6, 12 months in your area? What is that average price per square foot? And then comes the delicate science — and math of finessing the numbers to reflect the more unique or bespoke characteristics of the home. Sauna? Tennis court? Flag lot? Oh, the considerations and calculations!
The art bit is understanding people – the buyer — where the market is at, and what is the tolerance for price range where you are, at this exact moment? Where are the interest rates? What are people buying? Is it a condo? How many days on the market in that zip code have similar properties taken to sell? Is your style of home super popular right now? That neighborhood is so hot homes sell in less than a week? That’s data, too, of course, but it’s truly understanding that mindset, that appetite that is the real finish work when it comes to determining the price at which to sell your home. The additional artistry is understanding your priorities when selling? Have to have it sold quickly? Don’t care how long it takes you want the right buyer who’s willing to pay your price?
Of course all of these things factor in. It’s touches on the emotional, the financial, the very core of our fears and that which is most important to us. That’s why it’s so incredibly nerve-racking thinking you’ve either left money on the table or you’ve aimed too high and over-reached, possibly having to consider a price adjustment or pulling it from the market until a different time or after having done some value-add improvements.
It’s a tough conversation at times. Often, I’ve found, through the art & science method, you can determine a range: factoring all of these elements in, that provides something that everyone can tolerate — and possibly, very possibly, find very satisfying on closing day.
