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How To Price Your Home For the Market

Wednesday March 10, 2021

Selling

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When you’re selling your home, one of the first major decisions you’ll have to make is its list price. 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). That’s 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…

Understanding the market

The local market will have an impact on the price that makes sense for your home. What does current demand look like—and how does it stack up against supply? Put simply, ongoing market trends are bound to play a role in what buyers will pay for your property.

Timing can also matter. For example, spring is typically the most active season for 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.

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 should in turn be factored into your price.

Your comparable market analysis (CMA)

The only way to accurately price a home is to understand 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 desireablity—is one of the most critical factors. When it comes to the property in question, everything from square footage and 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!

Lastly, any updates or upgrades you’ve made to your home can also impact its value. For this reason, it’s important to hold onto records and receipts.

The right 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 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 anecdote. Fortunately, a skilled local agent can help you strike just the right balance—and achieve your selling goals!

Interested in learning more about our selling process? Get in touch—we’re happy to answer all of your questions—and help you put your property on the market if the time is right!

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