Pricing your home to sell in a competitive market is the best way you can get it to sell quickly. But it’s not as easy as it sounds. There are a few things you need to consider if you want the best price in a short amount of time.
Let’s look at how to price your home to sell quickly in the current Twin Cities market.
Why You Should Price Your House Wisely
When serious buyers are house hunting, they look for homes in their price range. If your home falls within this price range, then you're more of a chance of them making an offer. Outside this price range and there’s less of a chance.
Think of it as like shopping for a new pair of shoes. You know how much you want to spend, so you only look at shoes with a specific price tag. Even if you get distracted by a more expensive pair, you might try them on, but it’s unlikely you’ll buy.
The same goes for houses. When the price is too high, it could just sit there for months. If you do get offers, they’ll be lowball because buyers will know it’s not priced competitively.
Too low and you’ll put people off as they’ll think ‘what’s the catch?’ A low price could suggest that there are issues that have to be fixed that will cost them money or involve work.
So as you can see, it’s not that easy to find the sweet spot, which is why a professional is needed to help it sell your home fast.
How to Price Your Home to Sell Quickly
Most people consult a local real estate agent to help them price their house. This is because they know the market trends, and have the experience to price homes competitively. After all, it’s a win-win for both parties if your home sells quickly.
A real estate agent can market your home, so it sells fast. They have a database of contacts and a vast buyer pool who are on the lookout for homes in your area. You have a much better chance of selling your home quickly if you list it with a reputable agent than trying to sell it yourself.
It’s also the real estate agent’s job to conduct house viewings and field calls about the property, which means an increase in potential showings. They can advise how to stage the property to appeal to your target market and, once the offers roll in, negotiate the best terms with the highest bidder.
How Do Real Estate Agents Price Homes?
Real estate agents use comparative market analysis of similar homes sold in your neighborhood in the last 2-3 months. This gives them a good idea of the low end and top end of the range, and where your house sits within this range based on its market value.
To come up with the list price, the agent also has to take into account what the market is doing. If it’s a red hot seller’s market, then they may price your house slightly above its value. If it’s a buyers market, then it most likely is at or slightly below the market value.
Average Home Selling Price in Twin Cities
According to Zillow, as of March 2019 the median home value in the Minneapolis-St. Paul-Bloomington Metro area was $270,000. While the median price of homes currently listed was $337,500. This suggests that it’s very much a seller’s market in the Twin Cities at the moment, with single family homes in high demand.
Appraised Home Value vs. Selling Price
As you can see from the figures above, market values are consumer driven and are often way higher than what a home has been valued at. A property is worth what a buyer is willing to pay.
This is why it’s essential to use a real estate agent with their finger on the pulse of the market. They can help with pricing your home to sell quickly in the Twin Cities market and net you tens of thousands of dollars in the process.