Pricing Your Farmington Hills MI Home To Sell – Deciding on the right list price is often considered to be the first big challenge many home sellers are faced with. Luckily, you have a few resources at your disposal to figure out where your house stands among the crowd. You can definitely do your own research on property sites online to get insight into the market and your home’s value.
Online property sites like realtor.com®, Zillow, and Trulia, and others can give you a sense of local real estate trends, including your area’s median listing price, median closing price, and the average price per square foot. But, don’t be afraid to contact an experienced Farmington Hills REALTOR® like Tom Gilliam for expert advice and guidance.
Tom can provide you with a Comparative Market Analysis (CMA), which is a compilation of recent sales from your area. A CMA will take into consideration comparable home details, days on the market, final sale price, and more.
Searching Comparable Homes On Your Own
If you decide to start searching comparable Farmington Hills MI homes for sale on your own, they should have the following criteria:
- Be within one quarter to one-half mile from your property
- Have been listed within the last 3 months.
- Be close to the same age as your property.
- Have square footage within 10% of your property. For example, if your home is 1,700 square feet, you should look at comparable homes between 1,530 and 1,870 square feet.
Pricing Psychology 101
There is actually proven psychology indicating that homes priced just under a century number or a rounded number are more attractive to buyers. For example, a home that is priced at $299,999 might seem more approachable than if it were priced at $300,000. Also, pricing your home at an obscure number such as $298,913 could appear distracting or not make sense to prospective buyers.
Online Property Search Ranges
Most real estate websites list homes for sale within a price range so consider the price range your home will fall into. Buyers will often have a specific price range they are considering or can afford. Buyers looking at homes between the $275,000 to $300,000 price range will likely not see your home if it is listed at $305,000. However, if you were to choose a listing price such as $299,999, it would be included in their search results.
Expired Listings in Your Area
Take a look at expired listings in your area to gain insights on pricing your Farmington Hills MI home to sell. Compare original list prices of recently sold homes with their final sale prices. Were there multiple price reductions to get a sale? Perhaps the original list process was too high.
Remain Objective
When selling your home, you’ll need to put aside your emotional attachment to it. Get into the right mindset by thinking of it as an opportunity for you to move on to the next exciting chapter of your life rather than a loss. Also, be objective while taking a look at what else is selling in your area around the same price, and ask yourself if these homes are worth more or less than yours.
Lowering the Listing Price
Even with the best research, home sellers will often come to the conclusion that they’ve listed their property too high. According to the Zillow Group Consumer Housing Trends Report 2019, 60% of sellers change their listing price at least once. As soon as you recognize that you’ve overpriced your home, make an accurate adjustment. The right price can attract buyers, quickly. The wrong price may mean the house lingers on the market, which can create the vibe among buyers that there’s something wrong with it.
Pricing Your Home for the Current Housing Market
In order to price your house to sell, you’ll want to keep in mind the following market factors:
Inventory Supply & Demand:
If your home is one of 20 comparable listings in your neighborhood, you may have a hard time getting the price you want, since supply outweighs demand. But, if it’s a hot market and you’re home is one of just a few listings available in your area, you may be able to get your asking price, or even higher.
Seasonal Market:
In the majority of housing markets across the U.S. spring is considered the best time of year to sell a home. The weather is getting better and families want to move during the summer break before school starts back up. Fall is usually considered second-best, as most people are back in town from their summer vacations. Winter is typically the slowest season, not only because of bad weather, but people tend to be focussed on the holidays.
Buyer’s Market
In a buyer’s market, you need to be priced slightly lower than the competition, because there are more homes for sale than there are buyers in the market.
Seller’s Market:
In a seller’s market, you can add about 10 percent to a comparable sale, since inventory is limited and buyers are competing for fewer homes.
Neutral Market:
In a neutral real estate market, there’s a balance between the number of buyers and the number of homes for sale. In a neutral market, you’ll want to keep an eye on comparable properties in your area to make sure your pricing is similar.
Turn to a Local Expert Like top-rated Farmington Hills REALTOR® – Tom Gilliam
A qualified Farmington Hills MI REALTOR® like Tom has real-world experience in your community, knows the nuances of your area’s micro-market, can expertly assess how your home compares to those recently sold in your area and can tour your property to determine where it fits within the current marketplace. Tom will consider online market data as well as rely on first-hand knowledge about your home and the neighborhood to better inform your listing price.
If you or someone you know is considering buying or selling real estate in Farmington Hills, MI, please give Tom Gilliam a call today at 248-790-5594. Tom will put his knowledge, skills, dedication, and 20 years of local real estate experience to work for you!
Tom Gilliam, REALTOR®
RE/MAX Classic
29630 Orchard Lake Rd.
Farmington Hills 48334
Call: 248-790-5594
Office: 248-737-6800
Email: [email protected]
License #301741