There are many myths out there about how to price a home when you are looking to sell, but unfortunately, those myths do not always lead to a successful sale at the price you want. There are a lot more things which go into creating the price of a home than just its original price and your remodeling. Fortunately, there are other ways to know the correct selling value of your home to guide you towards the right price.
Avoid “Your Home’s” Bias
When it comes to knowing the price, your own opinion is likely going to have a lot of bias in it. You know how much you spent for it, you have many fond memories of your house, and you know how much money you need to put a down payment on the next home. Instead, you need to remember that your buyers are going to have their own list, how much down payment they can afford, how much they can pay for similar houses, and whether or not they like your home. When deciding on a listing price, always remember, it’s not about what you “think” your home deserves. Sometimes the economy and local market affects the listing price.
Get Multiple Perspectives
The best solution to this bias is to bring in an outside party. Have a few agents come out to your home and offer a comparative market analysis, which will show the prices of recently sold homes, on the market homes, and unsold homes. While this is not a perfect pricing guide, and some will say to place your home high or low within that spectrum, it will at least give you a starting point based on what the buyers are seeing. Using multiple real estate agents will also create a more nuanced price because you can build off of their biases in shaping your price.
Compare your Home like a Buyer
You also need to examine your house with a critical eye, especially in comparison to other homes in La Jolla, for sale and not. Consider size, amenities, and appearance. If your home would look nicer to the casual glance than the homes around it, you may try to price it a little higher because the buyer will be having a subconscious appraisal of the house as “really good”. Otherwise, if it is average, go towards the middle and if it is slightly below average, price it a little lower. Do the same with homes for sale nearest yours, as most people are looking for houses within a certain location.
Having the right price point for your home when you sell it will depend on many factors. Not only do you have to think of yourself and what your needs are, but you also need to consider your home from the perspective of a potential buyer. Who will be interested in buying your home? And what will they think of it, based on their own needs? Once you have matched what they will be looking for in the price of a new home, you can adjust your own price to their ideas and sell.