If you’re about to put your investment property on the market, you’ve probably heard a number of times that you’ll need to “price it right” for a quick sale. But how can you successfully do this? Here are a few pointers to help you price your home.
Don’t Overprice Your Property
Real estate experts say the biggest and most common error that sellers make is overpricing their property. Many sellers mistakenly believe that they should set a high price initially, and then come down if no one bites. The truth, however, is that pricing unrealistically high won’t attract potential buyers. It will merely turn your investment into an overpriced home that gets a lot of showings but no offers. Agents often use this category of listings to make other properties look like better deals.
Check Public Records and Find Comps
Your county assessor’s and recorder’s websites contain transaction records for neighboring homes, so when pricing your property, research data for properties that have recently sold and are similar to yours. Then look into how much they sold for. The assessor will also have appraisal information and may be able to provide you a fair-market value for the home. Neighboring properties that are similar to yours are considered “comparables” or “comps” and you can use these similar, recently sold properties to price your home. Look at the sales price, quality and size of the homes sold and then adjust the price of your property as needed.
Price your home for a seller’s market
In a seller’s market, consider the “bidding war” strategy, which involves pricing your home below its market value in order to attract multiple offers, and hopefully yield a higher price due to competition.
Signature Seller
When selling your home at auction, understanding buyer demand is crucial. Hubzu’s Signature Seller Auctions offer real-life market value feedback to help you determine what buyers are searching for in a home. This simple, transparent process gives you the insight you need to get your property in front of serious buyers at auction. If you’re looking to sell quickly, Signature Seller also has 7-day auction cycles for fast transactions.
A residential property that’s correctly priced has the potential to attract at least one solid offer within 30 days. Do your research and price your home to appeal to buyers while encouraging competitive offers. If you’re ready to start the buying or selling process, register on Hubzu today.
*The purpose of this article is to provide general guidance for potential sellers. Sellers should consult with a licensed real estate agent for advice regarding pricing and listing a particular property.
