Deciding to sell your home, especially if it is your primary residence and a place you have spent considerable time in, can prevent you from taking a clear-eyed and dispassionate approach to arriving at the right market price for your cherished property.

A home’s price is determined by a multitude of factors, such as location and comparable properties, current market conditions, available housing supply or inventory, buyer activity, any renovations, or upgrades in the property, etc. All of these and more go into determining that sweet spot, which will leave both you and the buyer satisfied.

What are some of the key strategies sellers can adopt to ensure a timely, profitable, and hassle-free sale of their home? Read on. 

Underpricing Your Home

Sellers oftentimes list their homes at a lower-than-market-value price in the hope to generate greater buyer interest that eventually concludes with a favourable sales outcome. This is a strategy that sellers usually resort to when they are not sure about the right market value for their home or are operating in a real estate market that is experiencing volatility. As a result, they might opt to underprice their home to see what kind of offers come their way in the near term, say a week. On a cautionary note, using such a strategy could result in sellers only receiving offers at the low-ball price they have initially quoted.

Overpricing Your Home

With a limited housing supply continuing to reduce buying options, sellers can be tempted to overprice their homes to take maximum advantage of current market conditions. At the same time, this can also deter or turn away cautious buyers who would rather wait for buying conditions to improve. This can prove detrimental to your home’s sales prospects as buyers seek out more fairly priced comparable properties. As a result, your property could remain unsold in the market for a long time, making it even more difficult to negotiate for the sales price you want.

Listing Your Home at Market Value

Advisedly, the safest and best option to choose, pricing your home at market value offers many advantages. Firstly, it signals to potential buyers that you are interested in negotiating a fair and mutually acceptable sales process. Secondly, it reflects a surety and confidence on the seller’s part about the pros and cons of the property. Thirdly, it gives buyers a realistic idea about the financial commitment needed to make an offer for the house. It also gets you offers from serious and credible buyers interested in closing the deal quickly.

To ensure you reach this stage as quickly as possible once you’ve decided to sell your home, hire an experienced Realtor who can guide you in determining an attractive listing price for your property. This is key to ensuring a favorable sales outcome as real estate listings usually generate the most interest during the initial period of listing.

A Realtor will usually consider these factors to calculate a sound market value for your home:

  • Comparative analysis of similar home sales in your neighborhood.
  • Location of your home, proximity to transit, educational, and recreational amenities/facilities.
  • A home appraisal to determine the property’s current condition. (Complete renovations or upgrades before listing!) 
  • Current market conditions and buyer activity.
  • Available housing inventory in the region.

If you are considering selling your property or have questions about any information shared here today, please do not hesitate to contact the RE/MAX Royal Team Sachdeva Realty team. 

Have a good weekend!