When you’re selling your home, one of the first major decisions you’ll have to make what your initial list price will be. The truth is, there’s a lot more to it than most sellers believe. Set your price too high, and you may not get any offers. Too low, and you may not receive full value for it (in fact, some buyers may even believe there’s something wrong with your property and move on).

Contrary to what many homeowners believe, you can’t base your selling price on what you paid when you purchased the home. The good news is that it’s unlikely that your home has decreased in value, especially if you owned it for several years.

It’s not unreasonable to expect a positive return when selling, but it all depends on the current market.
Extensive background research is a must, and a finely-tuned instinct about local real estate will also help. These are just a few reasons why working with an agent who knows the ins and outs of pricing is crucial.

If you’re preparing to sell your home, here’s what you need to know about setting the perfect price.

Curious about what your home might be worth in today’s market? Book a free evaluation right here.

A Realistic Home Price Can Earn You More

If you want to earn the highest possible amount from your home, setting a higher price might seem to make more sense. A little wiggle room at the top means you can negotiate with buyers and still come out ahead. However, this advice is badly out-of-date. Many experts would argue it was never valid in the first place.

That’s why our team members at Woolcott Real Estate go deep when it comes to uncovering the right price for your listing. Using the latest information and analyzing the market trends allows us to pinpoint a value that generates a high level of excitement to attract as many potential buyers as possible. This is what happens when we find the perfect sweet spot, neither too high nor too low.

Pricing is one of the most critical factors in whether your home sells or for how much. You’ll find even more helpful resources in the posts below:

• 8 Important Things to Remember When Selling Your Home
• Why Did My Neighbour’s House Sell but Mine Didn’t?
• What’s Your House Really Worth?

Understanding the Real Estate Market

Setting a high price doesn’t help if you can’t find a buyer who will pay what you are asking. The local market will have a massive impact on the amount that makes sense for your home. Let’s start with how much demand is out there right now for a house like yours —and how does it stack up against supply?

• When demand is sky high, that will be reflected in your price. If inventory levels are also low, buyers will naturally expect to pay more.
• If buyers are scarce, you may have to consider a lower starting price to get people interested in your home. This goes double if inventory levels are high.

No matter how you look at it, ongoing market trends are bound to play a role in what buyers will pay for your property. It’s not about how much you feel like your house should be worth. It’s about its value in the eyes of buyers who are seriously considering a purchase.

Timing can also matter. For example, spring is typically the most active season for Hamilton and Burlington real estate. Buyers who flood the market at this (usually competitive) time of year may be willing to pay a little more for their dream home. That said, seasonality has taken a back seat to market conditions in recent years. With a well-thought-out strategy, anytime can be a great time to sell.

Lastly, economic factors can have a significant impact on home prices. Interest rates—especially those that apply to mortgages—affect the number of buyers who can afford to purchase. This is something else you must factor in when deciding on your price.

If your price is on point, the next step is to execute a solid marketing strategy. You can learn all about our process in Our Full-Service Real Estate Team’s Guide to Marketing Your Home.

Your Comparable Market Analysis (CMA)

The only way to accurately price a home is to form a clear picture of what buyers are willing to pay for it. To uncover this information, your real estate agent will look at recent market activity in your neighbourhood—and pull together a comparable market analysis (CMA).

This crucial document will look at recent sold prices for local homes that are very similar to yours. Location—including schools, amenities, and overall desirability—is one of the most critical factors. When it comes to the property in question, everything from square footage and number of bed and bathrooms to overall age, condition, and layout is going to be relevant. If your property has any highly-unique or unusual features, your agent will look at those too!

Let’s imagine your CMA turns up a number that leaves you less than thrilled. Is there anything you can do? The good news is that some updates or upgrades can impact the value of your home, so be sure to hold on to those records and receipts. The key is to know what will offer the best return for the least investment and focus on what matters most. Even then, it’s important to remain realistic about current market conditions.

Showcasing your home in its best light can help you earn more from your sale. The posts below will give you some ideas:

Worth It or Not? What Renovations Really Help When Selling Your Home

The Power of Staging When Selling Your Home

Minor Upgrades, Maximum Results

A Customized Strategy for You

Finding useful comparables is both an art and a science. Only an experienced local agent can examine all the relevant factors, find truly similar properties, and make informed recommendations based on what they find. Having said that, the sum you settle on is ultimately up to you.

That’s why a true professional will also factor in your goals and preferences. For example, if you’re adamant about trying to get multiple offers (and it makes sense given current conditions), your agent might suggest pricing on the lower end of your potential range. This step can drum up competing bids in a hot market.

While many sellers have ideas about what their home is worth, they’re often based on anecdotes that you should take with a grain of salt. Fortunately, a skilled local agent can help you strike just the right balance—and achieve your selling goals!

Interested in learning more about the selling process? Our Hamilton and Burlington real estate agents are happy to answer all of your questions. Contact us here or call 905-332-9223 to connect with an expert today.