Selling Your Short-Term Rental Property? These are the 7 Most Important Factors to Consider when Setting Your Price
The Los Angeles Housing Market
The always-busy and highly desirable Los Angeles real estate market is competitive. On average, homes placed on the market receive 3 offers. They typically sell in 49 days as opposed to 2022’s average of 40 days (Redfin). Despite this, prices have climbed significantly. The average sale price per square foot is $621, a 3.1% increase and much higher than the national average of $244. The L.A. market is a complex one that often requires an expert to navigate its ever-changing tides.
The Importance of Pricing Your Home Correctly
A lot of factors come into play when pricing your home for sale in Los Angeles. Location, features, and even personal circumstances all play a part in boiling down to that magic number – the perfect asking price. Though it can be tempting to shoot for the highest number possible, it can deter buyers and leave your house sitting on the market for several months.
Price drops usually follow, which can send the wrong message and further repel buyers. Oftentimes, this prolongs your home’s time on the market, creating a cycle that’s difficult to escape.
But how do you determine what price will attract interest and sell quickly, all while ensuring you get the best possible return on your investment?
In this blog post, we’ll go over some of the most important things to keep in mind as you determine the best asking price for your home.
The Most Important Factors When Pricing Your Short-Term Rental Property for Sale
1. Market conditions
One of the biggest factors to consider when pricing your home is current market conditions. If the market is hot and many buyers are looking for homes, you may be able to swing a higher price for your property.
On the other hand, if the market is slow and there are fewer buyers, you may need to lower your price to make a sale.
To get a sense of current market conditions, it’s wise to work with a real estate agent familiar with the local market. They can give you information on recent sales prices for similar homes in the area, as well as any upcoming trends that may affect the market.
2. Home condition
Another important factor to consider when pricing your home is its condition. If your home is in excellent condition with no major repairs needed, you may be able to ask for a higher price. On the other hand, if significant repairs are necessary or if the home is in poor condition, you may need to lower your price to attract buyers.
To get a sense of the condition of your home, it’s a good idea to have it professionally inspected. This will allow you to identify any issues that need to be addressed before putting the home on the market.
Your home’s location is also an important factor to consider when pricing it for sale. Homes in desirable neighborhoods or areas with good schools and amenities tend to fetch higher prices than those in less desirable locations.
If your home is located in a highly sought-after area, you may be able to ask for a higher price. On the other hand, if it’s located in a less desirable area, you may need to lower your price to offset the location and attract buyers.
4. Size and features
Both the size and features of your home matter when pricing it for sale. Generally, larger homes with more features and amenities tend to fetch higher prices than smaller, simpler homes.
To determine the best asking price for your home, it’s a good idea to compare it to the sizes and features of similar homes in the area. Look at their sales prices to get a sense of what your home might be worth.
5. Personal circumstances
Personal circumstances can affect your home’s asking price. For example, if you need to relocate quickly and are in a rush to sell, you may need to lower your price to attract buyers. On the other hand, if you have the luxury of time and can afford to wait for the perfect offer, you may be able to set a higher price.
It’s important to consider your personal circumstances when pricing your home, as they have a significant impact on the price you’re able to ask for.
6. Pricing strategies
There are multiple strategies for setting your home’s asking price. One approach is to list your home slightly above market value in anticipation of a higher price. This strategy can be effective in a hot market where a lot of buyers are competing for homes.
Another approach is to price your home at or slightly below market value to attract more buyers. This can be a good strategy in a slower market, where fewer buyers are looking for homes.
7. Price per square foot
Another important factor to consider when pricing your home is the price per square foot. This is the price you’re asking for each square foot of living space in your home, and it’s a useful metric for comparing the price of your home to others in the area.
To determine the price per square foot of your home, divide the asking price by the total square footage of the property. Then, compare this number to the price per square foot of other homes in the area that are similar in size and features. This can give you a sense of whether you’re pricing your home appropriately.
Let us help you get the best asking price for your Los Angeles short-term rental.
You deserve the best asking price for your home. Let OpenAiRE help you find it. It’s important to consider all of these factors carefully to determine the best asking price for your home. By doing your research and working with an expert real estate agent, you can set a price to help you achieve your goals and make a successful sale.