Many home sellers think that pricing their house to sell based on the home across the street that sold last year for a high amount. Or, they just figure they “need’ a certain amount after the sale. Some sellers will pick a number that sounds like they would be very happy with instead of doing the proper research of similar properties and what they are selling for. They should then evaluate the difference of their property before coming up with a marketing price. Listening to a neighbor saying that their home is worth “x” amount is definitely not a good idea for pricing your home. Neighbors are not actively selling homes so don’t know the real value. Selling a home in San Diego and knowing the foundation of pricing a house will go a very long way. Your realtor will be able to discuss the basics and strategy behind the numbers. Together they will come up with a price point that will make sense and work for everyone.
1- Appeal to the Vast Majority
Pricing a home to the vast majority is precisely what it sounds like. Not only must you price it for the potential buyer; the appraiser is one that will put a price on it as well as the lender/bank offering the buyer a loan on it.
2.- Avoiding Strange Pricing Figures
When a buyer is searching for homes for sale, we have all seen the different range of pricing. Some are $625,000, or $699,999, etc. Then there is the occasional $625,754. You wonder how someone comes up with this number. There is no rhyme or reason. There are sellers that like the combination of these numbers. These scattered numbers will not help your home stand out or look better in the searches than any other home on the market. If anything, it may even hurt you.
3-Pricing to stay within the Range
One strategy to go over with your Realtor is pricing your home at the cutoff price. For example, instead of pricing your home at $655,000, or $660,000 it would be better priced at $650,000 because the buyers that are searching for properties are typically searching in 25-50 thousand increments. Buyers that are searching up to $650,000 will not find your house if it is at $655 or $660. There are different strategies to consider, and they are not set in stone, but your Realtors should go over all of the ones to think of with a fine tooth comb with you before putting your home on the market.
4- Different Pricing Strategy
Another strategy that does well is pricing right under the rounded number of where the market is. Many studies have shown that pricing a home just below a rounded number works on emotions. For example, let’s just say that your home shows a value of $600,000. It would be advised to price it at $599,000. It is only $1,000.00 right? However, it looks and feels like such a better deal than a home that has a 6 in front of it. It is the same as going to a store such as Target or Staples. You never find something priced at $20.00 or $30.00 dollars. It will always be $19.99 or $29.99. The same holds true for selling a house.
5- Price Your Home According to the Market
The market does not care how much you need or want. The market is and will be what the market is at that given time when you decide to sell your home. With this being said markets change very quickly. You may be in a seller’s market today but depending what may happen in your City or town, this can quickly evolve into a buyers market. So, just make sure that you and your Realtor stay on top of current events and price your home accordingly. Remember, not only do you have to sell it to a buyer, but you are also having to justify the price with the appraiser and the bank that the buyer is getting their mortgage from.
So here is a small look at how pricing a home works. It is more complicated than just picking a number out of the sky and throwing “For Sale Sign” in front of your house. Our Listing Team does this every single day. Together we will be able to help you determine the right strategy to pricing your home so that it will appeal to buyers, appraisers, and banks. Also, so that can get the absolute best amount for today market. Call us anytime at 619-818-8122, and we will sit down and go over the pricing strategy that will work for your home and current situation.