Top 7 Strategies on Pricing Your Home for Sale
in the Tuscaloosa and Birmingham Area
When selling your home in the Tuscaloosa and Birmingham area, attractive pricing and packaging are the two most basic essentials. In our current real estate market, the buyers have a lot of choices and since no two homes are the same, making that distinction between your home and the dozens of others for sale is the key to a successful sale.
The Importance of Pricing Your Home Right in the Tuscaloosa and Birmingham Area
The most important factor to consider when selling a home in the Tuscaloosa and Birmingham area is pricing the house correctly. You don't want to overprice because you will lose the freshness of the home's appeal after the first two to three weeks of showings.
On the other hand, you don't have to worry about pricing it too low because homes priced below market value often receive multiple offers, which will then drive up the price to market.
Here at DSEAYCOM, we would like to help you sell your home successfully by sharing our top 7 strategies on pricing your home for sale in the Tuscaloosa and Birmingham area. These are the most effective strategies that will ensure your pricing helps you stand out in a positive way.
1. Find the "Magic" Price
Some sellers in the Tuscaloosa and Birmingham area try to get creative with their asking price. However, an oddly specific figure calls attention to itself for no good reason, like a house painted purple. Buyers will often wonder why the seller chose that figure, but it’s best to keep the seller far in the background.
The goal is to showcase the property, not the seller, and to appeal to as wide an audience as possible.
Think about prices that motivate people more than others. For example, if you have a target figure of $305,000 in mind, set it at $299,995 to capture people who do range searching (e.g., $250,000 to $300,000). There is also a proven psychology that items priced just under a "century" number are more attractive to the buyer.
2. Use Comparative Market Analysis (CMA)–
Study Active Listings
If you're working with a DSEAYCOM agent, we will automatically get you a CMA, which includes recent sales and days on the market. Most agents will not even need to step foot in your house. Once you give them your address, they can create a CMA from the comfort of their office, though they might want to see your house to fine-tune the CMA.
Most buyers will visit a few of these comparables, and you should, too. Make note of what you like and dislike, and the general feeling you get upon entering these homes. If possible, try to recreate those feelings in your own home if they don’t already exist.
Ask yourself why a buyer would prefer your home over any of the other homes you see and adjust your price to fit the value of your home. Looking at comparables currently on the market is ideal for giving you a better picture of what sells and what doesn’t.
Study Past Sales
This is the starting point for any thoughtful and successful pricing strategy; think of it as the "science" part. Take the time to study past sale statistics of homes in your area and areas similar to yours. None will be identical, of course, but having a clear understanding of true market value is an essential step in establishing your list price.
Look at every similar home that was or is listed in the same neighborhood over the past three months. Appraisers do not use comps older than 3 months, so try to stay as current as possible to get the best idea.
Remember that after you receive an offer, the buyer's lender will order an appraisal, so you will want to compare homes of similar square footage. Appraisers don't like to deviate more 25% and prefer to stay within 10% of net square footage computations. If your home is 2000 sq. ft., comparable homes are those sized 1800 to 2200 sq. ft.
Pull history for expired and withdrawn listings. Look for patterns as to why these homes did not sell and the common factors they share.Think about the steps you can take to prevent your home from becoming an expired listing.
3. Comparative Shopping
Often sellers are too emotionally attached to their homes to objectively place a value on the property, and feel there should be compensation for the “sentimental value”. Just as the word "value" implies, the memories your house holds can add to its price. That is, if you're thinking like a seller.
If you're thinking like a buyer, however, these memories don't mean a whit. Neither does your seller's optimism. When you're pricing your home, learn to think like a buyer and not like a seller. Prepare to be rational.
What are the things that you value in a home? Is it a large yard, an updated kitchen or a view? These are likely the same things that your buyer values as well. Talk to your agent about current buyer trends. Your price should reflect how your home compares to the others offered for sale. Buyers will find objections to any home, as none is perfect, but it is curious how quickly objections disappear when the price is compelling.
4. Use Your Agent
After getting a ballpark estimate, it's time to ask the experts. Ultimately, listen carefully to your agent’s pricing strategy. It’s their job to know what works and what doesn’t. And as with any strategy, be prepared to have an ongoing discussion about pricing with your real estate agent.
Pricing a home isn’t a “set-and-forget” procedure. A lot of factors can come into play when selling or buying a home in the Tuscaloosa and Birmingham area, and not all of them can be anticipated. If you can be flexible and react quickly to changing market conditions or new information, you’re more likely to get the best price with the least aggravation.
If you are serious about selling your home in the Tuscaloosa and Birmingham area, don’t underestimate the importance of using a real estate professional that will guide you through the process.Here at DSEAYCOM, we can help facilitate the process so that in the end, you will be successful in the sale of your home in the Tuscaloosa and Birmingham area.
5. Less is (Sometimes) More
A bidding war is every seller's dream. The best way to get into one is by under pricing your home. If you live in an extremely hot market, chopping 10 percent off the fair price could help your house eventually fetch 10 percent above the same price.
But what if your low price fails to attract the bidders you want? What if only one buyer shows and snaps up your underpriced house at list?
It's all about traffic. If you choose to under price, make sure the world knows it. This is an all-in strategy requiring massive upfront marketing, just like what we do for our clients. DSEAYCOM makes sure that your home receives extensive advertisements and publicity to find the perfect buyer in the Tuscaloosa and Birmingham area.
6. Fix-ups Add Value
The fair price of your home takes some things for granted: the paint and floor coverings are in good condition, it's spotless, landscaping or curb is maintained and you've de-cluttered your space. If you go above and beyond, your selling price can reflect it.
Some ideas include adding space and light, converting an extra room into a home office, boosting curb appeal, tricking out the bathroom and updating in the kitchen. Head over to our homeowner tips and home seller tips to learn about Home Improvement Projects and Tips That Add Value to Your Home In the Tuscaloosa and Birmingham Area
Pricing is all about supply and demand. It's part art and part science, and no two agents price a property the same way. When it comes down to it, agents at DSEAYCOM will be much better at figuring out how to price your home than others.
When pricing your home for sale in the Tuscaloosa and Birmingham area, leave some room for negotiation, but don't overreach. No seller wants to feel he left money on the table, and no buyer wants to overpay. Your price should give both parties room to maneuver, but if it is too high, you risk being perceived as unrealistic, and buyers will pass over your home.
Above all, stay rational and realistic to ensure that you price your home in that sweet spot of efficiency, where, in addition to padding your wallet, you also close the deal.
At DSEAYCOM, we’re happy to answer any questions you have about buying and selling in the Alabama area. Call us now or feel free to share our contact information with someone you know that needs expert help in buying or selling their home.
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