When you feel that it is time to put your home on the local market, one of the best things you can do to bring out motivated buyers is to price your home appropriately. To make sure you hit your mark perfectly from the outset, let’s go over 5 tips to help you set the listing price for your Miami property.
Your Neighborhood Comparables
The first step to setting the listing price and pricing your home well for your local market is taking the time to learn about the local market itself.
Check out the listings of other homes in your area, how they compare in terms of condition and features, and where they started price-wise versus where they are now. If you’re discovering that a lot of homes in your neighborhood have slashed their prices quickly or sat around on the market for months, chances are the price isn’t right for the local market. Next, try looking into the closing prices of any similar homes that have sold recently as well.
Just remember that pricing too low or too high can both backfire equally, so it’s a good idea to find that middle ground and give things a try.
While looking at the pricing of other homes in your area, make a list of the nearby shopping and entertainment venues, access to commuter routes or mass transit, schools, parks, hospitals, and any other significant points of interest.
Historically, the number one selling point to feature in a listing is proximity to a favorable school district. This still holds water, but it’s not as critical of a selling point as it used to be as newer homebuyers are waiting until later to settle down and have families.
Your current crop of first-time homebuyers is more concerned with affordability, utility, and longevity than just about anything else.
If you’re feeling lost on how to set the listing price for your home, we recommend hiring a licensed appraiser to work their magic and come back with the appraised value of your home. Do keep in mind that this appraised value is a ballpark estimate and not the last word on your home’s listing price.
Appraisals take into account the condition and features of a property with a dash of market trends to come up with the final value, and presenting your home positively could always justify a higher listing price. The other reason an appraisal could help you out is that, eventually, a buyer’s lender will want an appraisal done to ensure the lender isn’t approving a loan that could put them underwater quickly in the event the buyer defaults on their mortgage.
Making sure you don’t stray too far from that appraised value if a bidding war gets out of control could save your buyer’s pending loan approval.
Leave Wiggle Room
Set your initial asking price with the understanding that it is likely to come down at some point throughout negotiations.
While you may end up accepting a bid well over the listing price, there’s also a chance the buyer will want to renegotiate at some point. Whatever the case, give your pricing that bit of cushion to aim a bit higher than you’re ultimately expecting.
Something else to note is that you need to price your home as objectively as possible and remove your sentimental value from the equation.
Other Market Factors
Finally, the ebb and flow of the real estate market will certainly impact the listing price for your Miami property.
National economic and market conditions do trickle down into almost all other facets of life, and it’s important to prepare for things to change. The last few years have brought us a booming seller’s market, but rising inflation and interest rates have curbed that manic buyer enthusiasm to which we had become so accustomed.
Your Guide in Setting a Listing Price for Your Miami Property
If you’re looking to sell your home and want an experienced partner to help you set an accurate listing price for your Miami property, contact us today at 305.771.1710!