How to Properly Price your Home for Sale in Metro-Detroit

When the time comes for you to sell a home in Metro-Detroit, don’t be tempted to start with your ideal price and then mark it up for negotiation and call it good.  That price won’t accurately reflect the true market value of your home, and if you do manage to get an interested buyer their face will more than likely show dissatisfaction once they see the inside of the property.

Pricing competitively without losing money on your home is difficult given the economy right now.  The constant shift between supply and demand can cause huge variances in home values from area to area that ideally should remain consistent. 

Unfortunately, buyers are going where they can find the best deals - so you have to find a careful balance.  Here are several strategies to help you determine the true value of your property.

1. Request a Comparative Market Analysis

Spend time speaking with a few real estate agents in Metro-Detroit and have them visit your home.  Get their opinion on an expected selling price.  Request a comparative market analysis from each, which will show you the selling prices of similar/comparable properties that were recently sold as well as homes that are still on the market.

Keep in mind that price recommendations based on a comparative market analysis aren’t set in stone.  There are multiple approaches to pricing depending on the tactic you want to use.

2. Research Selling the Home on Your Own

Take some time to visit homes and open houses in your area.  This can give you the opportunity to assess what those homes have to offer in comparison to your own (amenities, location, size, state of repair).  Assuming the pricing falls in a similar range, ask yourself which you would prefer to buy?  Which looks more attractive?

3. Know the Market for Homes for Sale in Metro-Detroit

If you keep your eye open for current marketing conditions you can try to price your home based on what’s going on in your community or area.  Try to find out as much as possible about the local marketing including home price trending (up or down?), what season will your home be on the market; how does the demand look in your town; is the local job market holding or are there concerns of layoffs in large local businesses?

4. Try to Sweeten the Deal

If you simply can’t afford to get into a pricing war with competing properties, then find other ways to sweeten the deal for home buyers.  Buyers have plenty of needs that go well beyond the cost of the home.  Can you offer seller-financing?  Fast escrow closing? Lease-option? “subject to” financing? 

There’s also the option of sellers concessions when selling a home in Metro-Detroit.

5. Take the Emotion Out of It

Most importantly of all, abandon your personal point of view.  Buyers are not at all concerned with how much you paid for the home, or how many memories are tied to it, or how much work you’ve put into the home.  Their concern is self-centered, and they don’t want to pay for sentiment.