In our previous blog, we talked about some of the strategies you can employ when pricing your house to get an excellent offer.
We mentioned that working with an experienced real estate agent and listening to her recommendations as well as checking out your competition can help you determine how much to sell your house for.
Below, we’ve listed more tips which can guide you through the process and help you get great offers when you put it on the market.
Review the Comparative Market Analysis (CMA)
If you are working with a real estate agent, you can expect her to hand you a CMA – a compilation of recent sales in your area. The report contains the following valuable information – property details, days on market (DOM) and the home’s sold price.
The recommendation is that your selling price should be within 10% of the average final sale price of properties in your neighbourhood. Also, make sure that these comparable properties have been sold within the last 3 months.
Meanwhile, in case you are going the FSBO route, you can research online to gather the data you need. Alternatively, you can request one from a real estate agent as some of them provide comps with no strings attached or you can hire an independent appraiser.
Use Price Banding
This is a strategy wherein you sell at a price point that is not too saturated. What typically happens is that sellers pick an amount that’s close to the price of their competitors. As a result, prices tend to bunch up at certain price points.
For example, if there’s a house that is priced €324,000, succeeding sellers tend to sell close to this price – say, €323,000 or €326,000. In this case, what you can do is to check where the “crowding” is and avoid that price range.
So, if 3 or more houses are priced between €323,000 and €326,000, and the next set of properties are priced at the €340,000 range, the best option is to sell at the €330,000 price band.
Review Expired House Listings
Check out expired listings and find out if they got relisted again. More importantly, take note of their final sale price.
Find out why they did not sell the house quickly. Do they share common factors, i.e. a high asking price? How many price cuts did the sellers make before their properties got sold? Use the information you gathered to help you prevent your listing from becoming expired.
Never Pick an Obscure Number
Ever noticed items with prices ending in 99 like €14.99? Wondered why sellers didn’t just price it €15? Well, this is a pricing strategy that has been proven to be effective.
Prices ending in 99 or 95 are called “charm prices”. Items with charm prices do not just attract buyers but also have higher chances of getting sold. Since people read from left to right, the first digit of the price is what registers in their minds. Hence, they tend to think that they are saving if they purchased something that’s priced €19.95 as compared to the one that’s sold at €20.
This strategy also works in the real estate business. A house that’s priced €399,999 is more attractive than one that’s selling for €400,000.
You can employ this strategy, but please avoid random and obscure prices like €456,789. This won’t appeal to buyers and may even deter them from inquiring.
In conclusion, it is important that you price your house right at the onset. In case you fail to do this, do not get frustrated. What you should do instead is to immediately address the problem with the help of the tips recommended above to come up with a better price.
It should be noted, however, that price is not the only reason why some houses do not get good offers. This is why it is beneficial to let a real estate agent sell your house. Given her experience, the agent can identify the specific issue and address it immediately.
What’s the best price for your house? Our experienced Dublin real estate agents can help you determine the price that’s going to give you the best offer. Call us today on 01 495 9020 to learn more about our services!