Looking for guidance on how to price your home competitively? Want to learn how you can get more money at closing? You’re in the right place! This post will teach you how to use online home value estimators and comparable home data to determine a good list price for your home that will spark competition among buyers.
Use the Redfin Home Estimator:
Redfin’s home value estimator will give you a strong starting point as you work to determine a fair market value for your home. You can also use ZIllow Zestimate to get an idea of your home’s value, but we’ve found that Redfin is consistently more accurate – especially in California. Their estimator uses property records, information on your home and neighborhood details to determine your home’s value and has a very low 1.8% margin of error. To get your Redfin estimate, go here, type in your address and click the search icon.
Pull up Comparisons:
Comparisons of current home sales in your area will also help you set a fair price for a property. Focus your search on houses with a similar number of square feet, rooms, and bathrooms. You should also compare details like the size of the plot of land and any other features, like a den or stunning view, that may impact your sale price. Compare your property to at least five recently sold homes that are in your neighborhood and are similar to yours. To simplify the process, once you’ve pulled up your home’s profile on Redfin, you can click on the “Similar Homes” link on the top right side of the page to see comparable homes in your area.
Price At or Below Fair Market Value to Spark Buyer Competition:
You may be tempted to price your home high to leave room for negotiation, but Zillow’s massive database suggests that’s usually a bad move. After evaluating years of data that include thousands of home sales, Zillow CEO Spencer Raskoff reported that pricing your home at or below its fair market value gives you a much better shot at sparking competition among buyers. Competition gives you the opportunity to drive up your price, meaning you’ll make more money at closing than you would have if you’d priced high and been forced to lower your price to meet buyer expectations. In fact, Raskoff’s research shows that homes priced at or below value typically sell for 7% more than those that enter the market priced above market value.
Data has proven, time and time again, that following the steps outlined above to price your home will give you the best shot at getting good returns on your home at closing. If you have questions about the process of pricing your home or you plan to sell a property, contact us! We’re happy to help you figure out the best price for your home.
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