Pricing your home correctly is a delicate art. A single digit can spell the difference between a successful sale and complete failure.
So how do you get it right? This home sellers guide will offer a few insights into home pricing in Williamsburg, VA and other nearby communities.
Comparable recent sales and active listings will affect pricing
The sales price of comparable properties in your neighborhood is a good starting point for determining the price of your home. Look at listings that sold within the last three months – don’t use last year’s prices as reference as real estate prices can change very quickly.
But proximity doesn’t always mean that your property will sell for the same price as another home – your property must be very similar in terms of age, square footage, number of rooms, and other features.
There’s a difference between asking price and sales price
The property’s asking price, which appears on the listing, and its final sales price, or the price for which it will eventually sell, are often different. Knowing the difference is crucial to making a profit from the sale of your home.
Common strategies include:
- Some real estate agents will recommend coming up with your targeted sales price, and to determine your asking price based on your targeted sales price and various market conditions affecting the sale of your home.
- It’s common strategy for Realtors to set the asking price slightly higher than the targeted sales price to make adjustments for buyers who want to negotiate lower, but without affecting your chances of making a profit.
Your Realtor will help you come up with the right strategy based on current market trends and other factors.
Not all home improvements return 100% of investment
You may take pride in the work you’ve done on your home, but keep in mind that not all improvements return investment. In fact, most improvements, such as new kitchen counters, bathtubs, and taps, return just a fraction of the cost.
And the longer you wait to sell your home, the more likely these trend-conscious upgrades will depreciate and become outdated, so that they don’t add much to the property’s overall value in the end.
Moreover, many of these improvements are subject to the personal taste of buyers. For example, some buyers may like the idea of a quartz countertop while others may prefer marble.
So unless you’ve done something substantial, such as adding a second level or a new bathroom, don’t expect a huge return upon the sale of your home.
That’s not to say that improvements are unnecessary – cosmetic improvements like these can make a home more attractive to buyers:
- Repainting the walls
- Replacing broken tiles/window panes
- Trimming the grass
- Updating fixtures
However, these small improvements will not always dictate the eventual sales price.
Pricing is about location, location, location
The old adage holds true for pricing your home. A gorgeous property located in an undesirable, high-traffic area might be worth thousands of dollars less than a similar home on a leafy cul-de-sac in a gated neighborhood.
Likewise, if your home is located anywhere near a landfill that smells or a commercial building that obstructs the view – you could be looking at potentially less profit than recent comparable sales.
The good news is that Williamsburg, VA has many desirable neighborhoods and yours could be one of them. There’s demand for homes in the best sections of town – get in touch with Coldwell Banker Traditions today for more information.
Avoid pricing your home too low
The perils of pricing your home too high are well-known:
- If buyers feel it is overpriced compared to similar properties in the area, they will skip your listing and move on to the next one.
- This will cause your listing to languish in the market, and the longer it remains unsold, buyers will take it as a red flag and avoid your listing altogether.
- You must continue to pay the upkeep of the property while waiting for someone to buy it – you’ll need to keep the lights on and the hallways clean for those home viewings.
This can trigger a vicious cycle that might force you to slash prices and start all over again.
But beware of pricing your home lower than the competition to attract offers. There is no guarantee that it will sell for that price. If it doesn’t, you’ll suffer losses on what might be the single most valuable asset you own.
Pricing your home lower than its fair market value could potentially attract a lot of buyers and consequently, multiple offers, each higher than the last one. If you can instigate a bidding war that can drive up the sales price, then it might be worth the gamble.
Ready to see your options in the Williamsburg, VA housing market? Coldwell Banker Traditions is one of the most trusted names in real estate. Message us here. You can also reach our real estate agents at 7572.916.981 and Info(at)CBTraditons(dotted)com.