Before listing your home, you’ll need to decide on an asking price. Recent sales in your neighborhood are a good starting point, but several other factors also play into the price of a home. In this article, we will discuss Pricing Your Home to Sell. Your real estate agent can assist with research and advice, as well as provide recent market data.
Start with the comps
The process of pricing your home typically begins with a review of recent sales. Real estate agents often refer to this data as comps, or comparables. Map out a price range based on similar age and size homes. Unless you live in an area with a lot of recent sales, you may need to look back a full year to get an accurate picture. When analyzing comps, remember that neighborhood location may also be a factor affecting sales price. For example, the same-sized house in a top-rated school district may sell for a significantly higher price than one in a lower-ranked area.
Current market conditions
Other important variables in home pricing include the time of year and the state of the local market. In spring, inventory moves faster as more house hunters take advantage of the warm weather to tour properties, hoping to relocate when the school year ends. During those peak months, you may be able to list your home a bit higher than in the slower winter season.
The overall market also affects home prices. In a seller’s market, where buyers outnumber sellers and homes are in high demand, you will be able to start out with a higher list price. However, in a buyer’s market, you may need to price your home lower to draw attention — especially if you face a lot of competition, such as several similar homes in your neighborhood for sale.
Account for extra amenities
Certain home upgrades will provide a greater return on investment or make your home more attractive, thereby enticing buyers. Upgraded kitchens and bathrooms have historically been rated as attractive features by potential buyers. Finishing an attic bedroom ranks as a high-return project, primarily due to the added available living space in your house. According to the most recent Cost vs. Value report for Atlanta from Home Remodeling Magazine, simply replacing your front door, a home improvement project costing less than $5,000, nets a high return on investment.
Deciding on a list price is not an easy decision, as sellers must take into account a number of moving variables. A knowledgeable, experienced selling agent is the best person to help you with pricing your home in today’s busy Atlanta real estate market.
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