One of the most important decisions you will make besides deciding to Sell your Houston home is deciding on the initial listing price. Depending on the situation, most Sellers want their home to fetch the maximum value possible and may be tempted to make the big mistake of overpricing their home. Overpricing will be a wrong move. Sellers should be reminded by their Houston real estate agent that the value of their home is based on what a willing and able Houston home buyer is willing to pay.
You’ve put a lot of love, upgrades, and money into this house you once called home and now you are selling it. The temptation to overprice your home is always there because the home is special to you. Before you decide to put that initial price on your home please do some homework so you will avoid overpricing it. Below are some ways to avoid overpricing your home.
1. Get Subdivision Comps
Avoid being tempted to overprice your home, have your Houston Realtor give you a Competitive Market Analysis or Comparable Market Analysis (CMA). Your Realtor should be able to give you the homes that have sold recently, homes that are actively on the market, pending homes sales, a list of homes that have expired, how long they stayed on the market before expiring, and the price they were listed at when they expired. This should give you an idea of the range in which you should be able to sell your home. It will be up to you if you want to list it at the maximum price of that range or somewhere in the middle. Somewhere in the middle is usually the spot where you will get the most showings and perhaps offers within the first 30 days.
2. Avoid Using Your Gut Feeling
Please do not use your gut feeling when pricing your home. Base your home price on the CMA given to you by your Agent. Sometimes using our gut feeling based off of emotions will cause us to make irrational decisions. The last thing you need is to overprice your home based on how you feel and then watch your home sit on the Houston market month after month after month while you continue to pay the mortgage. Think about it… add up all the monthly payments you would make while the home sits on the market for six months. This should give you and idea of how much you would loose if you overprice it or gain if you price it right initially. The saying “time is money” is very true when it comes to how long your home will be on the market.
3. Find Out Where Your Future Home Buyers Are Coming From
The majority of home buyers find their homes searching the internet using their IPads, iPhones, Android smartphones or laptops. These home buyers are very savvy and usually do plenty of research on homes they are interested in before they even attempt to purchase. They usually have a maximum home price they are willing to pay and if you price your home out of that range you will lose out on several hundreds of potential qualified buyers. Buyers that would have been the perfect match for your home.
4. Find A Good Home Inspector
A good home inspector will give you an idea of what repairs if any will need to be made. If you do not use a home inspector to find out what repairs you may need…. the buyers will surely use their home inspector’s home inspection report to negotiate a reduction in price. The home inspection report is not intended to be used as a negotiation tool and should not be used as such. A home inspection should be used to point out defects or items needing repair.A growing trend in Houston home buyers and their real estate agents and probably nationwide is to use the Home Inspection report to get a deeper discount on a home instead of using it for its intended purpose.
To avoid overpricing your Houston home, you should get advice from your local expert Realtor and figure out what price you can live with if your home sold the next day after listing it on the Houston MLS (Multiple Listing Service). I hope this information will help you in deciding what to do when you get ready to sell your home and save you some time and money when that time comes for you to sell your Houston real estate.