Selling your property sounds like a piece of cake, mainly when it is located in the flourishing Florida market. However, as a landlord, you can find it difficult to seal the deal on time or go on a loss if effective home pricing strategies are not applied.
Before making a final decision, follow this guide on the best evaluation methods based on historical data and experience in the South Florida property management. These strategies will assist in selling your property at a competitive price, whether it’s a quick sale. Let’s dive right into it.
5 Effective Home Pricing Strategies for Sellers
- Carry out Comparative Market Analysis (CMA)
- Take advantage of seasonal shifts
- Take an online evaluation
- Fine-tune your prices for online standards
- Use real estate price pyramid as a guide
#1: Set the Price Using Comparative Market Analysis (CMA)
Start with performing a Comparative Market Analysis based on previous property sales within your location. Valuing your property within the price range of your competitor will help you find a buyer faster and at a reasonable price.
At Threshold, there are experts with data available to carry out the complete market analysis for you.
What does a Comparative Market Analysis entail?
- 10 comparable sales within your property location. Also known as comps
- Photos showing old and new features of your property
- An arbitrary of what your comps sold for
- Tables and charts showing market trends in the location
- A map of all included listings
A complete analysis can be put into a document of more than 20 pages.
#2: Set Home Prices Using Seasonal Shifts
Understanding the seasonal changes in South Florida can help you sell at a higher price than your competitors.
Threshold has collected data on sales and made a comparison to note the difference in prices sellers experience in the two major seasons. With our insights, you will understand when to list and when to sell your property.
Remember, timing is critical in the Real Estate world.
When is the best time to sell my property in South Florida?
Listing your house for sale in January will help you quote a price higher than the market average by 4-5%. Recently the best sales have been recorded in August.
Winter is ending in January, and potential buyers are preparing to get in the market, while August is the summer season, and Miami is the best-known summer destination. With this knowledge, you can tap into the market just at the right time.
#3: Set a Competitive Price based on Online Property Evaluation
You might not be sure of your house’s value due to its age or the various repairs you did that make it hard for you to settle for a particular value, don’t worry. There are free online value estimates you can use before listing your house.
Always choose the best online valuation that will set you within the current market price range while considering the age and cost of repairs done on the property.
#4: Fine-tune your prices for online standards
90% of your potential buyers are browsing the internet looking for ideal homes to buy in your area. If you don’t make a good impression, you won’t get noticed, and you know what that would lead to…a house listed for sale longer than it should, making its value drop like a rock.
How to optimize your prices for online traffic
Know your target customer spending budget. Your potential customer can search properties within a price range of 70,000 – 120,000 USD while your marked price is 125,000 USD. The 5,000 difference would hinder your property from being discovered by a lot of potential clients,
Also, upload the best visuals (photos and videos) while listing your house online. People are more easily convinced by visuals than word descriptions.
Lastly, have the property listed on the right platform where your house can get eyeballs. A top property manager already has the right traffic looking to buy in your area.
#5: Set a Profitable Price Using the Real Estate Price Pyramid
A price pyramid will show you where more people are looking to buy and where few are. With an average market value of 45,000, let’s look at how to position yourself on the price range spectrum.
Set the Home Price 5% Above Market Value
Quoting your property above the market value would mean you would receive fewer clients viewing your property. This could hurt your spirit if it stays for weeks without showing signs for potential buyers.
It is recommended that you lower the market value if that happens. However, you can hold on and sell during a suitable season at the preferred higher price.
Set the Price at Market Value
60% of homes are bought at market value; this means you would get 60% of the interested buyers viewing your house. Sweet, right?
Set the Price 5% below market value
Buying at a bargain is every future homeowner’s dream. Setting your price below the market price will help you tap up to 90% of your potential buyers. You can always make the buyer feel like they have a bargain when various factors come into play, such as location, materials used, and seasons.
However, many homeowners sell their homes at undervalued prices due to emotions, mostly fear of failing to sell for a long period of time.
Takeaways on the best home pricing strategies
All these home pricing strategies are essential if you want to get the best value for your money. Combining them will help you sell that property fast and at the best price. Don’t be that emotional owner who feels his house is part of the bad batch that will never be bought. Use help from trusted property management.
Property Valuing in South Florida FAQs
What are the 3 approaches to pricing strategy?
- Cost-based approach
- Value-based approach
- Competition-based approach
These are the essential factors put into consideration when coming up with a pricing strategy.
Is South Florida a good place to sell?
Yes, the South Florida environment and climate make the place desirable for many future homeowners.
Why are real estate prices high in South Florida?
There is high demand for houses in this part of Florida, which makes the prices of houses slightly higher.
How do I create a pricing strategy?
- Determine the cost used.
- Outline your objectives
- Be within the legislation
- Carry out research
