When you’ve made the decision to sell, you have a multitude of factors to consider, including setting the asking price if you’re looking for a successful transaction. But setting the asking price for your home is not as straightforward as you may have originally anticipated. We aim to help you follow the best strategies to set the right asking price from the start.
Sellers have high expectations of their home’s selling appeal, and often assume that they can command top dollar for their property. This assumption is a trigger for confusion during the actual sale, so it’s important that sellers are aware of the differences between the asking and selling price of a home.
When a home hits the market, the homeowner decides on an asking price, established after researching selling data of other homes in the same area. Home sellers list their properties for a ‘desired’ price in the hope that interested buyers are willing to match it when making an offer. An asking price established through varying amounts of research, property appraisals, and market analysis, is what you hope to receive from the sale.
On the other hand, an offer price is an amount a prospective buyer is willing to offer for the home, which could be more or less than the asking price depending on the market conditions. For instance, in a seller’s market with less supply and more demand, a buyer may be willing to offer a higher price than the asking price to secure the home. In a lax market with an oversupply of homes, a buyer may offer a lower amount than the asking price of the home.
The asking and offer price serve as the foundation for negotiation where both sellers and buyers are looking to maximize their value. The final price agreed upon between buyers and sellers for a home is usually known as the selling price. This number is the actual amount that the buyer pays, and the seller acquires for the home.
The market value of a home can help you when it comes to setting the asking price, so you should consider conducting a professional appraisal to get a property report. This report can help you understand how much your property is worth based on upgrades and other features. This report is important because unrealistic asking prices can deter potential buyers. Property value typically depends on these factors:
- Existing market conditions
- Interest rates from lenders
- Property type
- Market value of similar properties in the same area
A professional appraiser and market research will help you arrive at a sensible conclusion when setting the asking price for your property.
How Your Real Estate Agent Can Help
A real estate agent typically understands all the nuances of the property selling process, which makes it easier for you when you’re looking to sell your home. They provide you with a comprehensive market report that gives an accurate picture of your property’s value. They consider things like recently sold properties, the current market, upgrades, and community amenities.
Set the Right Price from the Beginning
Pricing your home correctly from the start is vital for a quick and best price sale. If you end up overpricing your home, you may find it hard to make the deal, which means that the house will end up staying on the market for longer. The longer a home is on the market, the more negotiation power buyers will have in the future.
Your real estate agent is the best source of information about the local community and real estate topics. Give Peachtree Realty Group, LLC a call today at 404-538-1639 to learn more about local areas, discuss selling a house, or tour available homes for sale.