What goes into pricing a home and how to get it right

Dated: February 12 2021

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Preparing to sell your home?

One of the most important things you’ll do when you’re ready to place your home on the market is to set the list price. It’s important to get it right for a few reasons - so you attract enough interested buyers, and it doesn’t sit on the market for too long. Pricing your home right will also ensure you get the best price possible that reflects the current value of your home.

Realtors typically assess these specific things

When deciding what price to list your home, realtors look at a combination of different things. Assessing what other similar properties in the neighborhood are listed for can help give a good idea of what a fair market price would be. We look at houses currently for sale, houses that have been recently purchased and houses that weren’t able to sell while they were on the market. By doing this we can create what’s called a comparative market analysis (an estimate of a homes value) that helps sellers set list prices and helps buyers make competitive offers.

We also look at the square footage of other listed homes in the area when setting the price. I personally like to approach pricing a home like this, it’s straightforward and the seller can get a good idea of what comparable sized homes in the area are selling for.

So, how can you get the price right?

Do your research

Browsing homes comparable to your own in the area and seeing what they’re selling for will help you gain a better idea of what a reasonable list price might look like. Look at square footage, bedrooms and bathrooms and location when comparing your home to others near yours.

Get rid of any preconceived notions you might have about what your home should be worth

This could be based off of what you paid for it originally, or just what you’ve always thought would be a fair price to get for your home. Remember, the housing market is constantly fluctuating, and the sure way to know what your home is worth and to get the value for it you deserve is to do your research and work with a professional.

Factor in renovations

If you’ve spent a lot of time (and money!) updating parts of your home, those updates should be factored into the final list price. Did you add an extra bathroom? Transform your backyard into an outdoor oasis? Knock down a wall or two and turn your home into something more open concept? Whatever the modification was, ensure you mention it to your real estate agent so it can be included in the listing description, and a factor considered in the final listing price. However, it’s important to note that renovations aren’t translated dollar for dollar (a $6,000 dollar bathroom reno won’t up the value of your home by $6,000.)

Slightly round down

When setting the final list price, rounding down – even by a dollar – could make a huge difference. This is important particularly for buyers who browse for homes online, which is how a large percentage of buyers do look for houses. Taking just a dollar away in price could really impact the amount of exposure your home gets. Buyers typically fill out a minimum and maximum price amount field online – and if your home is listed at $500,000 instead of $499,999 you have the possibility of missing a high number of interested buyers.

If you’re thinking about selling your home, or are looking to change up your current living situation for a new space, I’d be happy to help you through this exciting process, and to help keep it as stress free as possible. For more real estate information and to get started contact our office at 303-709-7814.

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Dina Young

Raised in the Longmont/Berthoud area, I've lived in Northern Colorado most of my life. I graduated from CSU with a Psychology degree and after raising 2 girls, got my license in 2012. I play hockey on....

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