Work with your agent.

This is crucial. Your agent brings the right mix of industry expertise and market knowledge to the table. To understand whether she’s pricing your home properly, read through the steps outlined below. Use what you learn about your home’s fair market value to evaluate the price your agent recommends.

Throughout the pricing process, a good agent will:

• Listen to your needs

• Take into account your research

• Use her knowledge of the local market to help you arrive at the right asking price 

You’re a team. A timely, profitable sale is win for everyone.   

Yeah, you should check the internet.

Pricing a home is both art and science. To understand your agent’s pricing decisions— and to be prepared to bring your own input to the conversation— start with a research phase.

Take advantage of online estimating tools but only to an extent. Property websites like realtor.com enable you to plug in your home’s address to see approximately how much your house is worth. They base their estimates on your home’s square footage and data such as recent home sales in your market.

But those results are estimates based on general factors, not your unique situation. If at any point the price you see in an online calculator doesn’t align with what your agent suggests, prioritize the agent’s advice. 

Online estimators also have a reputation among real estate professionals for misleading buyers and sellers alike with less-than-optimal pricing information. But as a starting point, they have their utility.   

Know your history.

What your home’s listing price should be largely depends on what similar homes or “comps” recently sold for in your area. To assess your home’s value, your agent will run the average sales price of at least three comps.

What constitutes a comp? A number of factors, including these: 

• Age 

• Location

• Square footage 

• Number of bedrooms and bathrooms 

Agents will look into the difference between each comp’s listing price and the price it sold for. They will consider price reductions and why they happened. They will also rely on inside knowledge of housing stock and the local market. That nuanced understanding is invaluable, particularly when measuring the unique aspects of your home with raw data from comps.

When selecting comps, agents generally look for properties that sold within a one-mile radius of your home and in the past 90 days. They find these homes using the MLS.

Size up the competition.

In addition to recently sold homes, your agent will look at properties that are currently for sale in your area. These listings are your competition. But listing photos don’t always tell the full story, so a good agent will check out these homes in person to see what condition they’re in and assess how your home sizes up.

You can do the same.

Understand the market you’re in.

The housing market where you live will greatly impact your pricing strategy. 

If you’re in a seller’s market, where demand from buyers outpaces the number of homes for sale, you may be able to price your home slightly higher than market value.

But if you’re in a buyer’s market, you may have to price your home slightly below market value. 

You can see local market trends by checking realtor.com. It offers charts that display important market data, such as a city’s average listing price, median sales price and average days homes are on the market. It’s a lot of information. Ask your agent to make sense of how your local market will influence your home’s price.

Put your feelings aside.

Many sellers think their home is worth more than it is. Why? Because memories. Because sentiment. Because pride.

But you have to stay objective. Buyers, after all, won’t know your home’s personal history. What makes your home special to you may not be something that entices them. They may want to convert your perfect craft room into a man cave.

As much as possible, set aside your emotional attachment. It will make it easier to accept your agent’s realistic, clear-eyed calculation of its price.

It’s all relative.

As you and your agent are talking price, the local market may throw you a curveball. In some markets, for example, it could make sense to price your home slightly below its fair market value to spark a bidding war. 

Of course, there's no guarantee this pricing strategy would pay off. There’s no one-size-fits-all playbook. Your home must be priced for its own local, or even hyper-local, market. Confer with your agent before attempting any unusual pricing tactics.

Be savvy with the number.

Pricing your home requires careful attention. In some cases, fair market value may not be what you should list it for.

If comps say your home is worth $410,000, setting that as your asking price can backfire. Buyers who are looking for properties under $400,000 won’t see your home in their online search results. This explains why many agents use the “99” pricing strategy (listing $400k homes for $399k). The idea is to maximize exposure.

Have a heart-to-heart with your mate.

Not the sole decision maker in your household? Talk to your partner about your home’s price before it’s listed. If you’re not on the same page about price or the other things that are important to you about the sale, each step of the process will be impacted by that tension. You don’t need that.

Keep your head in the game.

You’ve considered your agent’s advice and the two of you have agreed on the right price for your home. Hey, champ! Your house is on the market.

It’s important to to stay in continuous dialogue with your agent, the MVP of Team Sell Your House. Even after its listed, price should be an ongoing discussion. Markets are fluid and you may need to make tweaks.

Source www.houselogic.com/sell/how-to-sell-step-by-step/how-to-price-your-home