When it comes time to sell your home, it can be difficult to set your emotions aside and accurately assess your property’s value. Home is a sacred space where lives are built and memories are created - and it’s also likely your biggest monetary asset. When feelings and finances mix, it’s hard to put a price on something.
However, in order to sell your home quickly and for the best possible price, it's important to learn some tough lessons when it comes to your home's true market value. Here's what you should do to get a firm understanding of your home's market value:
Do your research.
Manage your expectations.
Price for today's market.
Take constructive criticism.
Do Your Research
The first step in this process is to do your research. Look at recent sales of similar homes in your neighborhood, taking into account factors such as square footage, number of bedrooms and bathrooms and any unique features that may impact the value of your property. Hiring a professional appraiser or real estate agent to provide a more accurate assessment of your home's value is often a good idea.
Manage Your Expectations
Once you have a clear idea of your home's market value, it's time to have an honest discussion with yourself and your real estate agent about your expectations for the sale. Are you willing to price your home competitively in order to attract buyers quickly? Are you open to negotiating on price or making concessions such as covering closing costs or repairs? Be honest with yourself about what you're willing to do in order to sell your home, and be prepared to make compromises in order to achieve your goal.
Price for Today’s Market
It's also important to understand that the housing market is constantly changing, and what your home was worth a year ago may not be the same as its current market value.
In 2021, when COVID-19 caused an exodus from urban centers and mortgage interest rates dropped to the range of 2% to 3%, home prices shot up in response to overwhelming demand and access to cheap loans. Today, as the Fed continues to fight inflation, mortgage rates are in the 6% range and that means higher monthly payments for buyers.
However, prices aren’t coming down enough to offset these challenges in many areas of the country, and homes are sitting on the market longer. Sellers need to accept the fact that their home likely won’t fetch the same price their neighbors commanded in 2021, because the market conditions simply aren’t there to support it.
To make deals happen, be willing to adjust your expectations and pricing strategy based on current market conditions.
Take Constructive Criticism
Finally, be prepared for feedback from potential buyers and real estate agents. It can be difficult to hear criticism of your home, but feedback can be a valuable tool in helping you make necessary improvements or adjustments in order to sell your home quickly and for the best possible price. Don’t be offended if you're asked to declutter, add a fresh coat of paint or spruce up your landscaping. These are all small expenses that could yield bigger returns in the end.
Selling your home can be an emotional and stressful process, but taking a step back to assess your home's true value and your expectations for the sale can help you make informed decisions. By doing your research, remaining flexible, and heeding professional advice, you can navigate the home selling process and come out with a successful sale.