<<< back to article list

Do You Know How To Price Your House For Selling?

  • +1

Blog by Ray Smiley | December 29th, 2014

When you set your Ottawa home for sale, the biggest challenge you face would be determining the current value of the home and also what list price you must set. There are a number of variables that play their role when determining the price of the home.  Here are some of the top tips that you can consider when pricing your house.

On the whole, the agents generally consider two aspects when they assist their client in figuring out the ideal listing price for their home. They include:

•    The current market value of home

•    What price should be listed to get offers either above or at the client’s asking price?

Determining the market value of home

In order to get the highest possible value for your home, it is really important that you first analyze the best initial price for your home. This can be done by analyzing the housing market of your area. It is important to mention here that housing markets tend to differ from city to city and province to province. Your home in Ottawa can have different value from the exact home located in another city.  Even the same home in Ottawa with different neighborhood can have a substantial difference in the overall price of the house. Therefore whenever you go to a reputable agent in Ottawa for selling your home, the very first thing he will do is to evaluate the demand for house in your area. This will give him an idea about the approximate value of your home.

There are some real estate agents who have their websites where they ask their clients to send a request for a home valuation. The agents then study and analyze the type of houses that are being sold in the specific area along with the prices. Later, they simply break down the numbers for comparable houses to the client’s house and see what the listed prices of homes were in the last three months, six months and during the last year.

No doubt, this is a thorough analysis but this enables the agent to have a better understanding of the housing trends in a specific area. The agents can easily tell their clients whether the prices in their area are going up or down and by how much over the period of time. It is important to state that in cold cities like Ottawa, the season tends to play a vital role in setting the price trends as well.

The experts are of the view that homes within the same neighborhood can sometimes have different values. The year in which the house was built is also a determining factor of the value of the house. Two houses that were built in different years in the same neighborhood will surely have a different value.

What should be the initial listing price of your house?

After getting an idea on the worth of your home, you still need to figure out the listing price of your house. Generally people try to be in the shoes of a home buyer who is interested to invest in a home in your locality. The home buyers start their scanning process by the checking the Ottawa real estate MLS listings. This gives them an idea about the homes they are interested in and the homes that they should visit in person.

The problems with overpricing

If the home buyers feel that your house is overpriced as compared to the other houses in the locality, they will surely not show any interest in your house. Potential buyers can easily get an idea about the houses that seem to be a better deal for them. It is a very rare chance that the buyers visit an overpriced house with an assumption that he would negotiate the price and will get a good bargain.

Overpricing your house will simply make it difficult for you to sell your house. There are many cases when such houses went stale on the market. It is a fact that buyers get very suspicious about the houses that have been on the market for a long period of time. They do wonder why nobody is making an offer for this specific house. Therefore it is very important that you figure out the right price for listing your house. Make sure you ask for a very realistic price so that you do not make the buyers run away.

Minor fluctuations in price can create big difference. When a home buyer searches for a home online, they usually have the option to select their range. Generally for houses, the ranges come within the increments of almost twenty five thousand dollars. This makes it easier for the buyers to look for their ideal house with in their price range cutoffs. Therefore, setting your home price on $455000 will not make any sense. Under this situation, it would be better if you set it at $449,900 as this will trigger a substantial amount of additional buyer's interest.