Pricing a Home During a Sellers’ Market

“It’s a sellers’ market so we can pretty much ask what we want for our house, right?” The correct answer is no—not if you ultimately want to get the highest return that the market will bear. So how do I help you come to the most effective asking price?

So much goes into the mix when prepping a property for the market and determining the best price for your property. I often tell my clients that it’s a bit like creating the perfect recipe, one that will have people craving your new creation. It’s an art as much as a science and takes experience to learn. As an agent I have to first consider your primary goal as a seller. Is it the highest price or the fastest sale? The best combination of the two? If you keep your home in prime condition and decorate like a model home, we can just pick the top comparable price and plan for multiple bids. But, is this an estate sale where your family doesn’t have time or resources to improve the home? Do you have a number of repairs or improvements that you’ve been putting off and now you don’t know which ones are worth it? Ultimately, the market determines the final price of your home sale and I’m just fine-tuning the recipe to get you the best results in both price and return on any improvements you make.

When a potential Buyer walks into a home, their first impression has the strongest influence on their buying decision. Does this feel like home? If it’s not in perfect condition, is it priced so that they can update it to their own standards and make it their dream home? Are there any deal-killers like odors, rot or structural defects? Is the school district a good one? (This can affect the price even for those buyers who don’t have children because they might be looking at their chances for resale down the road.) 

Once I’ve scoured the Multiple Listing Service (MLS) and the tax records for recent area sales, I do a deep dive into comparing the relative condition of each house that has sold, as well as the current competition. What are the updates in each home? How old is the roof? …the HVAC system? …the water heater? Are the bathrooms functional even if outdated? What’s the condition of the flooring?... the paint?... the windows? What is the home’s curb appeal? What do the neighbors’ homes look like? Does the home abut an industrial eyesore or a busy road? All of these things and more are compared and studied to pull together the right price for the home I’m about to market.

Once I know the details on the comparables (recent sales) and the current competition, I can usually come up with several options for my selling clients. One price for no upgrades or improvements, one or more for different mixes of improvements and upgrades, and one for a complete renovation. My selling client makes the ultimate decision about what will work best to meet their objectives. If you’re tight on time or money you might just want to unload the property in as short a timeframe as possible. If you love to transform a house and have the time, you might want to go for a full renovation so you can ask for the best price in the neighborhood.

Most often, my clients like to work the recipe with me to get the most financial impact they can from repairs, smaller upgrades, paint, cleaning and staging. We’re looking to do those things that get the best return—a recipe that buyers just crave.

The asking price needs to be finessed to meet your goals. Too high in the beginning (thinking you can wait out the buyers) most often results in a lower final price than if we had set a lower asking price up front. In a strong sellers’ market, we aim for multiple offers in the first two weeks—and that competition determines our ultimate successful price!