As you prepare to sell your house, there’s arguably one primary concern you have; how long it will stay on the market. Although you may envision getting a buyer in no time because it’s a masterpiece that’s still in good condition, that’s not always the case.
On average, it takes 55-70 days to sell a house in the US. Depending on the situation, this duration can vary significantly. While several factors determine how long your house stays in the market, pricing plays the biggest role.
Therefore, it is crucial that you price your house appropriately, especially if you want a quick sale. In this article, you will find tips on how to price your house for a quick sale.
1. Determine Your Motivation for Selling
Ideally, when selling a property, its actual value should determine how much you can get for it. However, the reason for selling is also crucial. If you’re selling to relocate for work or buy another house, you may need this process to end quickly.
If so, it is beneficial for you to adjust the price downwards to attract more aggressive offers. In essence, the shorter your timeline for selling, the more flexible you should be with pricing.
2. Understand Current Housing Conditions
As you know, the housing market is vibrant. While many people are looking for houses, they want to get the best properties but pay as little as possible. Therefore, to expedite the process, you must price competitively.
Begin by researching national housing trends and local real estate conditions. This will give you a clear picture of how the industry is performing. Some of the vital things to look up include:
- Inventory Levels – This refers to the number of houses available in the market. If supply exceeds demand, pricing will need to be below market value.
- Mortgage Rates – Most buyers use mortgage loans to purchase a house. When mortgage rates are high, they’ll be less willing to spend more.
- Home Price Movement – Generally, the value of homes rises over time. When year-over-year gains are slowing down, you’ll need to be aggressive with your pricing.
3. Review Comparable Listings
Now that you have a general understanding of the market, it’s time to determine how it is for houses such as yours. For this, you’ll need to review comparable listings in your area over the last three months.
To get an accurate picture, you must use the appropriate Comps. Here’s how a house qualifies as a comp:
- It’s within your neighborhood or two-mile radius
- Has square footage that’s within 10% and 20% of your house
- The number of bathrooms and bedrooms must be similar to yours
- The house is the same age as yours or within a five-year margin
- It was sold within the last 90 days
- Amenities such as garages, pools, etc. should be the same
- Its condition and renovations should be similar
- Similar area amenities such as schools, transport, etc.
Sold Comps
For a clearer picture of how to price your home for a quick sale, look at the comparable listings sold. Focus on how the selling price compares to the actual price and market value. This will let you know by how much you may need to reduce the price.
You can find details about home sales in your local assessors’ office. However, ensure that you also factor in lot size variances, configuration, and upgrades.
Withdrawn and Expired Listings
Along with sold comps, check those that have expired or have been withdrawn and relisted. Try to find patterns into why they did not sell. For example, it may be because the pricing was unfavorable, or the sellers used a discount brokerage or one with a poor track record.
The objective here is to identify and avoid making similar mistakes.
4. Determine What a Cash Buyer Would Pay
While most home buyers use mortgage loans, some have ready cash. In addition to being less risky, cash purchases also close quickly. Once you agree on the details with the buyer, you can get paid in as little as two weeks. This is because cash sales do not need appraisals and other hoops involved with mortgages.
However, you should know that cash buyers often negotiate for discounted prices. Considering you want a quick sale, a discount may be a better option than waiting three months. Once you know how much a cash buyer can pay for the house, you can price slightly higher to leave some room for negotiations.
5. Spark a Bidding War
Even in a buyers’ market, it’s possible to sell your house quickly. However, you’ll need to undercut the prices of comparable listings by 5-10%. In so doing, your listing will attract many people interested in such properties. As a result, it may trigger a bidding war allowing you to recoup part of the undercut value.
6. Choose an Agent Wisely
Although it’s possible to sell a house without the services of a real estate agent, this is not the time to take such risks. Their expertise, experience, and network are what you need to get a buyer quickly. However, you should do thorough due diligence as not all agents can deliver as expected.
Invite different agents to value your home but don’t rush to the one who promises the highest amount. Ask each to explain how they arrive at their figures. More importantly, look into the agent’s track record and similar listings they’ve sold. This will give you all the guidance you need.
It’s All About the Little Things
When selling a house quickly, you can’t afford to make any mistakes. So ensure that your pricing strategy complements your objective and that you have the right agent by your side. Also, if there are any eyesores or earsores in the house, have them fixed as they may put off buyers.
