How To Price Your Edmonton Home Correctly
Because selling a home is such a major financial transaction, it requires careful thought and planning - especially when it comes to pricing. If you’re looking to sell your home in Edmonton, Alberta, setting the right price for your home can make all the difference between a quick sale and a property that lingers on the market. Here, we’ll help Edmonton home sellers, just like you, understand the hows, whens, wheres and whys of pricing your home correctly to attract buyers and maximize your profit.
Understanding the Edmonton Real Estate Market
Before you can set a price, you need to understand the market in which you’re selling. Edmonton’s real estate market can be influenced by various factors, from economic conditions to the time of year. Researching current local trends, like whether it’s a buyer’s or seller’s market, can influence how you price your home. A real estate professional can provide valuable insight into these trends and help you understand what comparable homes are selling for in your area.
Accurate Pricing is Critical
Pricing your home accurately before you put it on the market is essential if you hope to sell your home to quickly and for top dollar. Overpricing can lead to a stagnant listing, leading to inevitable price drops, making it appear as though there’s something wrong with the property. Either way, this leaves you at the mercy of savvy buyers eager for a deal. Underpricing, on the other hand, may attract more buyers, but it might mean you’re leaving money on the table. The goal is to find that sweet spot where your home is both attractive to buyers and aligned with its fair market value.
Conducting Comparative Market Analysis (CMA)
A Comparative Market Analysis (CMA) is a tool REALTORS® use to determine the value of your property by comparing it to similar homes in your area that have recently sold, homes that are currently listed, or homes that were on the market but didn’t sell. Sometimes referred to as “comps,” your real estate agent can perform a CMA for you, taking into consideration factors such as location, lot size, home size, age, features, and condition. All these variables can significantly influence your home’s worth.
Consider the Unique Aspects of Your Home
Every home has unique characteristics that can affect its value for better or worse. In Edmonton, attractive landscaping, energy-efficient upgrades, a finished basement, or a heated double attached garage (ideal for cold Alberta winters) can be particularly appealing. On the other hand, outdated features and finishes or items needing repair or replacement will work against you. Highlight your home’s most unique and desirable selling points in your listing and take them into account when pricing your home.
Adjusting for Market Conditions
In a seller’s market, where buyer demand outpaces the number of homes for sale, you might price your home more aggressively. Conversely, you may need to price more conservatively in a buyer’s market to attract buyer attention. Your Edmonton REALTOR® will take into account current market conditions and buyer/seller behaviour to help you price your home competitively.
Get Your Free Home Evaluation
Many reputable Edmonton real estate agents offer free home or property valuations. During this process, your agent will “assess” your home and offer you valuable insights into your home’s market. Through a home evaluation, homeowners can receive a professional opinion as to their property’s worth and make more informed decisions regarding the sale. A home evaluation also helps set realistic expectations, assists homeowners in identifying potential areas for improvement, and confidently navigate the selling process. Best of all, it’s FREE!
Practice a Little Psychology
Though often overlooked, the psychological aspect of pricing can’t be ignored! Pricing strategies such as listing your home slightly under a round number (e.g., 499,999 instead of 500,000) can make it appear a better deal and often fall into more search brackets, potentially reaching more buyers. For instance, if a buyer is looking for homes priced UP to $500,000, your home may not show up in relevant searches if you at the cap amount.
Keep Timing in Mind
While there’s no wrong time to sell a home, some seasons may fare better than others. The best time to sell can also vary by location, but traditionally, spring and early summer are high seasons for real estate in Edmonton due to the more agreeable weather and the end of the school year. Price your home with the season in mind, preferably in a high season when more buyers are looking, and offers are likely to be more competitive.
Be Open to Price Adjustments
Once your home is listed, pay close attention to how it performs. If you’re not getting showings or offers after a few weeks, the market may be telling you that your home is overpriced. Be ready to adjust your strategy based on the feedback and market activity. Keep in mind that partnering with a REALTOR® will leave little margin for error when it comes to pricing, as they have a keen knowledge of current market conditions.
Include Listing Photos and Descriptions
A home’s listing is its first impression, so be sure to make a good one. High-quality photos and an appealing description may be able to justify a higher asking price. It’s often worth the investment to hire a professional photographer, videographer and copywriter to present your home in the best light. Don’t worry, your Edmonton agent will help you with this.
Make Room For Negotiation
Your pricing strategy should leave some room for negotiation. Understandably, buyers want to feel like they’re getting a good deal, so anticipate this in your price. That doesn’t mean you should inflate the price artificially—just be prepared for potential bargaining.
Selling a home in Edmonton requires a thoughtful, well-informed approach. With the correct pricing strategy, you can ensure a smoother, quicker sale and, most importantly, one that reflects the true value of your home. Leveraging the expertise of a local Edmonton real estate professional will provide you with the guidance needed to navigate the intricacies of Edmonton’s real estate market effectively.