Deciding on a list price can be difficult, especially if you let the sentimental vaue of your home cloud your judgement. You need solid information when determining the price of your home, because if it’s over-priced, you can bet potential buyers will know it and use it as bargaining leverage. Do your research.
Look At Your Neighbourhood
Although you may have sunk a lot of money into your home in renovations, your neighbourhood will ultimately have the biggest impact on your list price. You’ll need to review similar homes in your neighbourhood (style, size, features) that are for sale and set your price to be comparable to those homes. Even if there aren’t any homes for sale at the moment, your realtor will be able to help you track down homes that have sold recently in the area.
You can price your home a little higher than other homes in the area if it merits it – either it offers more space, land or newer features.
Consider The Market
If the market is in the toilet, pricing your home for full value may not be a great way to get potential buyers in the door. You may have to take a hit in your profit margins to get the place sold in a hurting market, and it may be better to wait until the market turns around to sell.
Your realtor will be able to give you the best advice about where to begin with your home pricing, but they can also help you develop a strategy in case you need to readjust your price, or if you get into a negotiation that threatens to undervalue your home.