The Importance of Setting Your Price

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So you’ve found the right realtor and you’re ready to list your Northern Virginia home. Now what? The next step, arguably one of the most important ones, is setting a price. Your initial listing price has a big impact on the market’s first impressions of your home. We’re here to explain a few things you need to know before picking the perfect number.


It’s All in the Price

You can’t underestimate the importance of setting your listing price. If you set the first listing price too high, you may not get any offers for a while, missing the prime window of opportunity. When a new home hits the market, there is a buzz of activity for buyers and their agents. The longer a home stays on the market, the more potential buyers will think something is wrong with it.

Alternatively, listing your home too low has its risks too. If you list your home low with the expectation that multiple offers will drive the price up, you could risk not getting enough for your home if a bidding war doesn’t happen.

With online search systems, buyers can input their price range and only search within those constraints. That means that if your home isn’t priced accurately, not all potential buyers will see it!

 

Look at the Reports

So how do you know what price to pick? Look around your neighborhood. Which houses are selling and at what prices? Keep an eye out for how your home compares to others in terms of size, accessibility, and features.

The next step is to do a comparative market analysis. In doing this, you’ll need to look at some different factors. For example, only look at homes that have sold in the last three months within a quarter to a half mile radius from your home. You’ll also want to compare square footage and features and determine your home’s comparability. Look at the listing prices and selling prices of homes under contract and consider your local market.

If this sounds like a lot of work, there are people who can help. A qualified realtor will be able to prepare this comparative market analysis for you. An agent who knows the local market will be able to tell you objectively how your home stacks up. They will also know the current state of the market and what homes are going for in the area. They’ve done this before!

You should also be honest with your realtor. If you feel that your home is worth more, have a conversation about why you think so. The realtor can help guide you in the decision but it is ultimately yours to make.

 

Be Flexible

We can’t always do things perfectly on the first try. If your initial listing price is too high and you aren’t getting any showings or offers, be willing to adjust the price. Listen to your realtor’s advice and be open to reducing the price.

As much as possible, be open and flexible when it comes to determining your home’s worth and getting your home ready to sell. Try to be impartial about what needs work. Think like a buyer! How would you feel about your home if you were going to buy it?

 

With the right agent at your side, this process can be made much easier. A good realtor will be able to walk you through choosing the right price and getting your home on the market. CK Realty Group does just that. Specializing in Northern Virginia, our experienced agents know the local market and can help you determine the best listing price for you. Contact us now to set up your no-obligation consultation!