Summer is a popular time of year to sell homes because families like to move while their children are out of school. Because demand is high, you can typically get a higher price for your Orlando home than you would at other times of the year. But coming up with the right price that both you – the seller, and your buyer can agree on – that’s the challenge, isn’t it?
If you list your home for too high a price, it could languish on the market for weeks and still not get any nibbles. If you price it too low, you could spark a bidding war, which would bring you the money you need. But a more likely scenario is that you end up leaving money on the table.
No matter how much you think your home is worth, the buyer is the one who will ultimately decide the value. The best advice is for setting that perfect price is to think like a buyer, so you can see your home as they do and price it accordingly.
Here’s how to come up that price:
Curb Your Emotions – It’s easy to be emotional about your home, especially if you’ve lived in it for several years, raised kids there, or just created fantastic memories. But emotions don’t pay the bills. And they won’t get your house sold either. Look at your house objectively, and keep an open mind when it comes to advice you get about pricing from a real estate agent.
Many home sellers tend to focus on what they paid for the house in setting a price to sell. The hope is always to make some money on the property, since real estate always appreciates, right? Wrong. Market conditions may be radically different now, than when you bought your home.
Check out the Competition – One way to determine the state of your local real estate market is to view similar properties for sale in the area. This will give you an idea of what people HOPE to get for their homes. A better indicator of how to price your home is to find out what similar properties have already sold for in the last couple of months. This gives you a truer picture of current market conditions. These “comparables” or “comps” as they’re called can be obtained from your real estate agent. Or you can look them up yourself on websites like Zillow.
When you’re checking comps, aim for comparing apples to apples. No two homes will be identical, but you can look for properties with similar square footage, number of bedrooms and baths, lot size, age of the home.
Keep Internet Searches in Mind– The majority of home buyers search online today. It’s especially true in Orlando, because the area near Disney World is appealing to foreign buyers who buy properties and then rent them out as vacation homes. Most home buyers tell their real estate agent they want a certain property for a certain price, such as under $500,000. The agent will then set up an automated buyer search in their local database for properties that fit that price criteria. So if your home comes in right at $500,000, that buyer won’t see it. That’s why many people round their sales price down to $499,999, for instance, to maximize the number of potential buyers who will see the listing.
Leave Room for Negotiating – Everyone loves to get a good deal. And it’s no different with home buyers. Give yourself some space for negotiating the price, so you can create a win-win scenario for everyone. How much space? Figure out the absolute lowest price you can afford to accept for your home and then add a cushion to it. Some real estate experts recommend rounding off your asking price in $5,000 increments. For instance, if you want $397,000 for your house, you can play it safe and round up to $400,000.
First-time home buyers may have difficulty coming up with cash for closing in addition to their down payment, even if they qualified for a loan. You might be able to seal the deal by offering to cover closing costs. That way you’re showing good faith and sticking to your higher asking price.
When you’re ready to put your Orlando home on the market, contact Team Donovan for a free consultation. We specializing in selling homes in the Orlando resort area, which includes communities like Kissimmee, Celebration, Davenport and Windermere. We work exclusively with sellers and buyers of second homes, investment properties and residences. Call us today at 407-705-2616.