If you’re selling your home, you’ll quickly realize there are a lot of steps in the process. Housecleaning, making repairs, and finding a listing agent are a few of the first things you’ll do. It’s also good to have a pre-listing home inspection and stage the house. Another important part of the process is working with your agent to determine the listing price. If this is your first time as a seller, here are a few tips to help you decide how to price your property.

Hire a Real Estate Agent

It is a real estate agent’s job to know the local market. They understand the factors that influence the price of homes in your town and in your neighborhood. Your agent will be working for you to get the best return-on-investment possible.

When looking for an agent, ask friends and family members for recommendations. House prices can vary greatly from neighborhood to neighborhood, so choose someone who knows the market in your area. A real estate agent who is familiar with local trends will help you set the price accordingly by researching the selling prices of nearby homes and comparable properties.

Determine the Listing Price Based on Renovations and Upgrades

Recent improvements will affect your asking price. Make sure you talk to your agent about the new roof you installed last year and the fact that you just finished the basement. An appraisal may be in order to help determine the property value if you’ve increased the heated and usable square footage of your home.

Use Similar Properties to Determine the Listing Price

If you don’t have an agent to guide you, check out recent sales in your area. Find homes in similar and nearby neighborhoods that are close in square footage and acreage to your own. You may even find a home that has sold in your neighborhood that you can use as a comparison.

Active real estate listings also offer a good insight into nearby asking prices. Look at how long each home has been on the market. A house that has been available for several months often means the home is priced too high. Active listings that aren’t selling could also indicate the market in the area is slow and you’ll have to make your home stand out to close a sale soon.

Is it a Seller’s Market or a Buyer’s Market?

Once you have determined what similar homes are selling for, talk to your agent about the local market. Is there an excess of homes currently for sale? In a buyer’s market, you may have to put some effort into your listing to make your home appeal to more buyers. If it’s a seller’s market, this means there are more buyers than there are available homes for sale. As a seller, you can set a higher price because of the high demand for housing.

Pricing your home is easier with the assistance of an experienced real estate agent. Choose a price that will allow some room for negotiations with the buyer. Get familiar with your local market to understand how to get the most for your property.

Prudent Home Inspections offers inspections in the Washington DC area. If you’re selling a home, contact us to request a pre-listing inspection.