With the major shift in our Austin real estate market this year, it is so important to get the listing price of your home right the first time. Price it too high, and it will sit on the market. Price it too low and you'll leave some serious money on the table. A price that’s “just right” is the one that attracts a buyer, is in line with the market, and puts the most money in your pocket.
Austin comes in at #2 in the Independent article, “The 10 cities with the fastest-rising house prices in the US,” coming in second to Boise, Idaho.
So, how do you keep up with the trends and know where your home should be priced?
Competition is Key
Our very own Josh Friedman, broker of Friedman Real Estate, explains his process for getting the house priced right. “The first thing we always do is walk our property and run comps to see what we’re working with. Look at what properties are selling in the area to get an idea of where we should be, and consider our properties' features. Knowing what your specific product is and how it compares to the competition is key. Even in this market, if you price too high above market value, it will only hurt you in the long run,” Friedman says.
Don’t Overvalue Your Home’s Upgrades
Just because you spent $100,000 on your home last year to renovate the kitchen and add a swimming pool doesn’t mean you get to add the same amount to your selling price.
While some renovations may increase your home’s value, it’s unlikely you’ll get back the full dollar amount that you put in. Before investing in any improvements, look at comparable homes for sale near you to see if upgrades are in line with the neighborhood and if they appear to have an impact on resale value. We are available to help you when it comes to remodeling strategies, too. A few examples of improvements that may not increase the value of your home are:
- A Chef-Quality Kitchen
- DIY Painting
- An Expanded Owners’ Suite
- Plush Wall-to-Wall Carpeting
- A Swimming Pool
Learn why here.
Keep Your Emotions in Check
When you are selling a home, you have to focus on it as a business transaction. Market research should be your guide, not your emotions. A buyer doesn’t care about the hours of sweat equity you’ve put into the property or the memories you’ve created. They are focused on the purchase of a new home so they can make some of their own memories!
Be Open to Adjust
“Once the home is listed, if you’re getting no showings, no calls, no interest from buyers, then you need to rethink your listing price,” says Friedman. In the ever-changing market we are currently experiencing, being open to adjusting the list price or making improvements to increase the salability of your home is crucial. A little TLC, like simple repairs, converting to a more neutral color palette, or upgrading curb appeal, can go a long way. If necessary, though, be open to adjusting your list price.
"With summer coming to an end and school back in session, the market has slowed and will continue to do so. Properties are sitting longer; we’re not seeing as many bidding wars or offers miles higher than list price," added Friedman.
If you are thinking of listing your home, Friedman Real Estate has seasoned agents who know how to price your home correctly and who are committed to providing you with a seamless transaction from start to finish. We love our community and its people!
