Some homeowners believe that overpricing their homes can help them attract more buyers, while others think that selling their property at a low price will give them an advantage. The truth, however, is that the perfect selling price is supposed to based on a realistic assessment of the real estate market and an objective evaluation of your home.
Setting the perfect price when selling your home in Los Angeles, CA, needs expertise, and that may overwhelm you. But don’t worry! Our how-to guide is all you need to determine a selling price that will help you get a top dollar for your property.
1. Look out for Comparables
An easy way of estimating the selling price is by learning the selling costs of residential properties that are similar to your home. Research and understand, for instance, how long it took for such properties to get off the market, what were their average listing and selling prices, and if discounts impacted the selling time and profitability of the seller.
To be able to make plausible observations, make sure that the comparable properties:
- Are as old or new as your home
- Have been listed on the market within the last three months
- Are located within a quarter or half a mile from your property
- Are approximately the same size as the home you wish to sell
You need to keep these considerations in mind because the size, location, selling season, and construction are important factors that help calculate the value of your home. And remember that these factors don’t work in isolation. Therefore, a house similar to your in size and construction will have a different value in a different neighborhood.
2. Know That You Need a Competitive Price
Once you have done your research, you will have a rough idea of what the real estate market is generally like in Los Angeles. Genuinely evaluate the amenities inside your home and its features to see what it’s actually worth. The next step is to decide a tentative price that is market-competitive, which means it should neither be too low nor too high.
Many home sellers don’t understand that overpricing is a risky thing to do: you may end up selling your home at a price that is way less than you expected. This happens because homebuyers and agents who have knowledge of the real estate market avoid bidding on properties that have unrealistically high prices. It turns away many prospective homebuyers, and the seller is soon forced to sell the home at a compromised cost.
3. Set Up a Value Range
A pricing technique that will help you get higher offers is the value range marketing. This technique involves selecting a listing price that you desire to have and labeling it as your upper range. Then, you choose a much lower price that you are likely to accept but would still negotiate on. For example, instead of directly quoting a fixed price of $500,000, you could consider pricing your residential property between $450,000 and $510,000.
4. Choose Strategic Price Points
Have you ever noticed how you are more likely to buy a dress that costs $29.95 than one that costs $30.00? Even though the difference in the price is minimal, the strategic prices trigger you to perceive the slightly lower one to be more attractive. By applying the same logic when determining the selling price of your home, you can set a price that is market competitive and also appears to be more affordable.
5. Offer Attractive Incentives
After you have finalized your selling price, think about what is a convenient and easy way of offering incentives to your buyer. Most homebuyers tend to shortlist two or three properties – and if yours happens to be one of them, you will have to give them something that motivates them to choose you. Some attractive incentives to consider are:
- Paying for any closing costs
- Getting pre-sale inspections done
- Giving allowances for home upgrades
Final Thoughts: Hire an Experienced Real Estate Agent
This guide will hopefully make it easier for you to set a price that attracts high-paying buyers. To streamline the process of selling your home in Los Angeles, CA, get in touch with Pezzini Luxury Homes right away! As a leading Los Angeles luxury real estate company in the city, Pezzini Luxury Homes promises to provide you with expert opinions and guidance that will make your home selling experience worthwhile.