finding the right listing price for home

Perhaps one of the most important decisions you'll make when listing your home is setting the asking price. Price it too high, and buyers won't bite. Price it too low, and people may think something's wrong with it. So, what goes into finding that sweet spot?

"In a perfect world setting the list price for a home would be as simple as figuring out the appraised value of the property, But, that isn't the case," said Kazantzis Real Estate Owner and Agent Andrea Kazantzis. "The market climate, the season, even the value of recent home sales in your neighborhood all figure into the process. It can be daunting to do on your own, but a knowledgeable agent can help find that perfect list price."

Check the CMA

To some of you, CMA is an awards show. But in real estate, it stands for Comparative Market Analysis. Basically, it's a list of recent sales of homes similar to yours that are within a 1/4 to 1/2 mile radius. It takes into account home features, days on the market, and final sale price. 

A real estate agent can provide you with a CMA or you can gather the information yourself. You can also hire an appraiser who, for a few hundred bucks, will give you the market value of your home.

"What you don't want to do is rely on an online home value estimate," Kazantzis said. "It's a good start, but it's a ballpark estimate, and being off just a few thousand dollars in your list price could be the difference between a sale or sitting on the market."

Set Yourself Apart

In addition to checking prices of homes that have already sold, check out how much homes similar to yours are listed for and try to find a less crowded price point. It's called price banding. For instance, if there are a bunch of homes listed between $264,000 and $266,000 and the next cluster is selling for $280,000 - you'd have the $270,000 price band all to yourself.

Avoid Century Marks

Just like stores will price an item at $9.99 instead of $10 - you'll want to steer clear of nice, rounded numbers. So, instead of listing your home for $300,000, $299,000 may be more appealing to prospective buyers.

In addition, keep in mind that many homebuyers search for homes in $25,000 increments. So, if you price your home for $252,000, Someone willing to spend $250,000 would never see your listing and you could lose out on a sale. 

Consider the Season and Market

Timing plays a big role in setting the listing price for a home.

Spring is considered the best time to sell a home, as many buyers are looking to move at the end of a school year. Fall is the next best season, as people are back from their vacations. Winter slows down because of the weather and the holidays.

You'll also want to consider what kind of market it is. It's all about supply and demand. If it's a seller's market - like it is right now - there is a shortage of listings and you may be able to add as much as 10% more than the comps in your area. During a buyer's market, you'll need to price a bit lower to stand out among a glut of sellers.

Selling a home is definitely a balancing act with many moving parts. But you don't have to go it alone. Kazantzis Real Estate has a team of agents ready to help you get the most value out of your home as possible.