I am a licensed IL home inspector and I've been an active IL Real Estate broker helping buyers and sellers, and if there is one thing I can tell you for sure is
Nobody really knows truly what your home is worth UNTIL it is listed.
Listing your property for sales is just the start, marketing properly by letting potential buyers (including other brokers) know it is for sale will tell you right away whether you have priced your home right. For a right priced home, you should start getting inquiries and showings on your home immediately even before the open house. Serious buyers do not wait for the open house if the home is priced right. If you can highlight the unique features about your house, that will definitely help shorten the sell cycle but if there are lot of homes similar to yours in the area available for sale, then it may take a considerably longer time to sell. A good agent should be able to point those areas and help highlight those features.
Now, what If you put your house on the market and nothing happens, no activity, no inquiry?
That should be the first sign that you either priced the home way too high or you need to improve the value of your home in the market. What that means is, either you do some improvements to the house to increase its desirability or lower the price. A good agent should be able to point that out before listing the property and not waste time testing the market. The home with the best perceived value will always sell first, so if your home is an exact model to another home in the same neighborhood, but priced higher, guess what? you will likely have to wait longer or wait until that other similar homes (better perceived value) with better value goes under contract before you start seeing offers on your home.
So, what can you do to make sure your home is priced right?
To start with it's important you hire the right broker/agent who can run the comparable, but not just the comparable based on the last 6-12 months sold house but who can compare features/amenities and physical condition of the house and neighborhood trends. Having been into many of the homes as a home inspector and as an active broker I can confidently say, the best way to figure out the value of a home is to physically be in similarly priced homes in the same neighborhood versus someone like an appraiser or most agents who are really basing the value entirely on pictures and a description.
Its a good practise for an agent to considering both - what has sold in the last 6 to 12 months, but also what is currently available for sale in your area and at what price. So, if you are a buyer and looking for a home the first thing, any buyer will do is compare home in their price range. As a seller you must know what other homes will buyers be comparing your home to.
Average days on market is also important stat which basically tells you how long is it taking homes to typically sell? DOM varies based on price range, Sqft , neighborhood, subdivision, Age , condition, Lot size amenities/features and season. Your agent should be able to provide DOM data for similar homes as yours which can help plan when the market is at the right time for your schedule. If your home has been listed on the market longer than the average, there's a good chance it's overpriced and/or has other issues that may needed to be addressed.
What are some of the factors that affect home value?
Location, Location & Location: Which town is it located in? Which school district? On a busy street or in wooded area ? Neighborhood? Nearby needs or attractions -walking distance to downtown area, or nearby train station, groceries and parks.
Size: Price per SF is typically based on finished above grade. The basement is always treated separately. Is there a basement and is it a full or partial basement? Finished or Unfinished? Walk out? Be aware of "Assessed Square Footage Vs Total Living Area". TLA include basement SF.
Age: When was the house built, was it recently updated ? any additions added?
Condition: How old is Roof, Windows, HVAC system, Appliances etc. wear and tear on floors, walls, doors and deck/patio etc.
Lot Size: Typically, less important factor when comparing everything else, but it has become more important post covid. Larger lots may be great if you have a dog but not great if you're looking to retire from maintenance.
Other Amenities/Features: crown molding, skylights, granite tops, kitchen and appliances, bathrooms, fireplaces? Pools aren't always a positive for buyers in the Midwest, requires year-round maintenance.
The biggest mistake sellers make is either thinking their home is worth more than it is or listing it too high to "test the market".
As a full time practicing real estate broker, I find it very helpful when listing homes for sale to always be looking at homes with buyers' point of view. Every day I see homes get listed online for a price that is simply too high. They likely didn't listen to their agent, or their agent didn't know what they were doing. It's not unusual for an agent to get a listing -list it for higher than they should have either because they felt pressured from the seller and just wanted the listing and make seller happy in the short term and cut price in the back end.
Here's what I see typically - After lists the property too high, seller usually becomes unhappy with their agent because it's not selling, they fire the agent, or agree to cut the price and waste few weeks testing the market. When I go for listing, I show my clients a more objective price on their home based on the market and real time data, if the seller wants home to be sold for a certain price, I recommend needed improvements to home for marketing.
I have also come across sellers that wants to start with a higher price -Last 2yrs during covid were an exception, not rule. This simply doesn't happen, and we are seeing that now. I work with buyers all the time, when buyers walk into an overpriced home, often they hold off on putting an offer in or want to start with low offer to test if seller is willing to negotiate-even if they love the house. Buyers would rather see if the seller eventually gets more realistic and lowers the price or will wait until another similarly priced or better valued home hits the market. Usually, a better valued home comes on the market and buyer put the offer on that home.
I prefer do a lot of market analysis before meeting my clients and try to point out the differences in the market/neighborhood and/or subdivision in real time so that my sellers and buyers can make the best decisions based on their motivation, timing and needs. If you would like a free, no obligation market valuation done on your home, please reach out.
