If you’re planning on selling your home, one of your first questions might be how to actually price your home for the market. And it’s an important question to consider, with the potential to make or break your sale. So how do you make sure you’ve got it right?
Start with the Right Agent
Your home selling — and buying — process should begin with an experienced, reliable realtor. A realtor who knows the market and has years to prove it will know the nuances of the industry, the market, and most important, will set realistic expectations for you. You might have high hopes for your home price, but depending on market variables, you’ll need a seasoned professional to be honest with you about what your home is actually worth. Whether you’re buying or selling, a transparent and knowledgeable agent will properly guide you through price expectation.
Use “Just Below” Pricing
A little psychology goes a long way, and there’s a reason retailers price items at $99 instead of $100. Housing economist Michael Seiler advises that knocking a list price down from $300,000 to $299,000 ultimately yields a premium of 2.5 percent to 3 percent when the home sells. If you’re buying a home, the opposite logic applies (offer $300,000 instead of $299,000). It’s a tactic that relies on precision and the guidance of a professional, but it’s worth exploring.
Ultimately, deciding how to price your home is a strategy that’s dependent on a market that’s ever-changing, especially if you’re navigating a city like Chicago. Creating a thoughtful and precise plan with your realtor is crucial in making sure your Chicago home or condominium sells, and sells for the right price.
Photo from 1308 Asbury Avenue