While it might not feel like it, a home is an investment, and when you do eventually sell your home, you ideally want to get as much out of your investment as possible. The asking price, also known as the list price, is the amount of money you wish to receive for a potential home sale (essentially, the amount of money you are asking to receive).
Unlike other, simpler transactions, home sales can be negotiated. This means that you can potentially get below your asking price or, sometimes
, above your asking price. The latter is obviously better, but most homeowners are prone to the former. Below we’ll cover how to get the asking price for your home and share how to calculate the asking price.
How to Calculate Asking Price
How to calculate the bid and ask price? Any home’s asking price can be impacted by a wide range of factors, including the property’s age, location, size, and general condition. Determining your asking price largely comes down to comps or comparables. This refers to other homes or comparable property in your location that are of the same general size and acreage as your home. Basically, a two-bedroom, two-bathroom home with about the same square footage will have about the same listing price as any other two-bedroom, two-bathroom home in that same neighborhood.
Of course, any upgrades to your property and surrounding land will affect your house price, but comps can give you a good place to start. This is why staging your home to sell is important. As you set your asking price, keep in mind the initial amount that you paid for your home, and any remaining balances that you have to pay on your mortgage.
The biggest variable to any asking price is the market condition, which can swing widely. Based on supply and demand or inventory levels, you may be in a buyer’s market (which empowers buyers) or in a seller’s market (which empowers sellers).
Most prospective buyers will not pay the asking price. Instead, they will make bids at lower amounts. These bids come with various terms and conditions, some that may actually be favorable to you and your sale. As a seller, you are free to accept or reject offers or suggest counteroffers. Negotiations can go back and forth until you eventually agree on the closing price sale price.
Getting the Best Price with FlipSplit
If you’re looking to get the best listing price for your home, FlipSplit makes the process easier than ever! FlipSplit acts as both an off-market cash home buyer and a house flipping company with a goal to increase the value of your home and kick back excess profits to you. A dedicated advisor can work with you to set a competitive but realistic asking price and help you achieve that price (or get as close to it as possible).
You should also consider getting a pre-appraisal and pre-inspection. A pre-appraisal to determine home value is an objective valuation of a property before an offer. This gives you an extra edge when fielding offer prices and is a great tool for negotiations. Pre-inspections look at all the repairs that your home needs, providing you and potential buyers with a clear look at the whole home. Both a pre-appraisal and pre-inspection can also speed up the selling process.
Offering incentives can also encourage potential buyers and give them that extra push. Incentives include paying for closing costs and repairs, prepaying for taxes, or buying down the interest rate. These incentives may also encourage prospective buyers to increase their bids.
Ultimately, the best thing you can do is stay informed of comps and market conditions that may impact your home price. If you’re looking for a trusted partner to guide you through the home selling process, FlipSplit operates all across Southern California from San Diego to Ventura. Consult with FlipSplit and don’t be afraid to get flexible with your asking price as the sales process continues. Submit a quote today!