How to Price Your Home
Sellers want the most money they can get for their house. They often already have a price in mind when I meet with them to talk about their home sale. Most people have their finger on the pulse of their neighborhood and know what other homes have sold for nearby. The issue is, most of the time, Sellers think their house is better than all the other houses that have ever sold in their area. (insert pause for chuckle because you know it’s true) So, when you want to sell, you really need a professional opinion to know how to price your home.
Things to consider:
- Age.With development going on everywhere you turn around, you may be competing with brand new homes or homes that are being built. Builders have much deeper pockets than individuals and can offer incentives to Buyers. If you compete with new construction, you must have some fantastic upgrades that others would want, be in pristine condition and/or price it less than what the new ones are asking.
- Location.The exact same house can vary in price just by where it’s located. Is it on a main street? Is it on a corner? Is it near amenities? Is it closer to transit? Is it near ongoing construction? Does it back up to something less desirable than others? Is it in the back of the neighborhood versus the front with limited access to ingress and egress? These are considerations and can help determine price. Just thinking that your lot is better isn’t enough. You must know why and be able to justify it.
- Upgrades and finishes.This is a tricky one. What you consider an upgrade may not be to a Buyer. Also, when was it upgraded? What materials did you use compared to what other similar homes have? Just because you spent $25,000 to have the backsplash tile shipped in from Italy does not mean that a Buyer will feel the same about it and be willing to pay for it. If you have personalized your home too much, you need to understand that you may only get to capitalize on the enjoyment it has given you while you lived there and not expect a Buyer to eat the cost when purchasing.
- Condition.This seems like a given, but, again, people’s ideas of good condition can vary widely. We live with our home’s flaws. We tend to get so accustomed to them that we don’t even see them anymore. A Buyer comes in and sees everything you have overlooked for years.
- Floor plan.Is the master bedroom upstairs in an area that is mostly empty nesters? Do you have a galley kitchen that’s tucked away when the trend is “open to the living space?” If you have a unique floor plan in any way, it needs to be considered when pricing your home to sell.
I will always be of the opinion that you should hire a professional Realtor to help sell your home. They will take these things into consideration and compare them unbiasedly to similar homes nearby. My business coach, Micheal Burt, says “It’s hard to see the picture when you’re inside the frame.” This definitely goes for Sellers and you should have a professional working with you to give you an objective opinion.
Michelle Froedge is a residential Realtor and Principal Broker in the Greater Nashville and Williamson County areas of Tennessee. “Mom” to four-legged fur babies, Tyler and Livvie, Auntie to Zelamie, she is a vegetarian and sings in her spare time. Michelle has lived in Nashville and Franklin since 1997 and has been selling homes since 2004.