Pricing Your Home for Sale

A REALTOR® can provide you with a Comparative Market Analysis of recent listings and sales in your area based upon home features, listing period, and sale price. 

COMPARABLE PROPERTIES SHOULD:
·         Ideally be within approximately 1 kilometre of your home.
·         Have been sold or listed within the last 3 - 6 months.
·         Be approximately the same age as your property.
·         Have square footage very close to that of your home. So, if your home is 1,500 square feet, comparable properties       should be between 1,350 and 1,650 square feet.

PRICING STRATEGIES:

  • Homes that are priced just under a “century” number (a round number) are more attractive to buyers, similar to $9.95 instead of $10 etc.  Hence, your $299,999 home might seem more affordable than if it were priced at $300,000.
  • Consider the price range your home will fall into on real estate websites. Most buyers have a budget range. A buyer looking at homes in the $280,000 to $300,000 range will likely not see your home if it’s listed at $305,000. If you choose a listing price of $299,999, it will show up in their search results — and they might end up being your buyer!
  • Although difficult, it is necessary that you remove your emotional attachment to your home. Look around at what is selling at around the same price and objectively, compare these homes to yours. Are these homes worth more or less than yours?
  • Even with prior assessment, and in our ever-changing markets you may find that you’ve listed too high and after a period of little activity you may need to make an adjustment.  Avoid making a few small pricing changes over time. It’s better to make one big price correction.

KEEP IN MIND THE FOLLOWING FACTORS:

Spring:  Typically, spring is considered the best time to sell a home.  Families want to move during the summer holidays.  Fall is a good time to sell as well.  Winter is the slowest season due to the weather and the holidays.

Inventory The law of supply and demand applies to real estate markets.  If your home is one of 20 for sale in your neighbourhood, it may be difficult to get the price you want, since supply outweighs demand.  But, if it is a hot market and you're one of just a few homes available in your area, you may be able to get your asking price, or even higher.

Buyer's MarketIn a buyer's market you need to price your home slightly lower than the competition because there are more homes for sale than there are buyers in the market.

Seller's MarketIn a seller's market, you can price your home relative to a comparable sale since inventory is limited and buyers are competing for fewer homes.

Neutral Market In a neutral real estate market there's a good balance between the number of buyers and the number of homes for sale.  In this market you'll want to keep an eye on comparable properties to make sure your pricing is similar.