Establishing the correct price for your home isn't as daunting as it might initially appear, and hinges on a multitude of factors.

Firstly, it's important to understand that all markets are local, sometimes even hyperlocal. This means that it's not only necessary to consider the sales prices in your city or town, but also to hone in on the prices prevalent within your specific neighborhood.

In the digital era, numerous tools are available for researching real estate online. We highly recommend Redfin.com for homeowners and buyers. Redfin provides data directly sourced from various MLS' nationwide, offering detailed information on both currently listed and previously sold homes.

We're particularly supportive of the 'velocity' method when it comes to examining the price of homes on the market.

The velocity method begins with identifying your market area and searching for homes comparable to your own in this region.

Consider:

- Square footage

- Number of bedrooms

- Number of bathrooms

- Plot size/acreage

At this stage, there's no requirement to be more specific than these four criteria.

Let's get you started on figuring out the right price for your property.

Below, we've provided an example of a summary prepared for a property in Naperville, IL.

We are interested in researching how to price 3511 Othello Drive, Naperville, IL, located in the Ashbury subdivision.

We are starting with the Zestimate for the home shown in the screenshot below.

You will see that the Zestimate is $678,500 with a range of $645,000 - $712,000. The dollar per foot range is $237 to $262.

Next we conducted a search in the Ashbury subdivision. Our search shows there are currently 4 homes currently for sale.

We individually looked at each of the homes, condition, location, upgrades, etc.

1727 Frost St has just reduced their price by $21,000 to an asking price of $599,000 or $233 per foot. The property is on the edge of the neighborhood bordering the busy Book Rd.

3116 Austin St is at the highest end of the range asking $774,900 or $258 per foot. Per the pictures, the property has the must updates in regards to kitchens, bathrooms, fixtures, etc.

Overall you will see that there is low competition for homes in Ashbury.

Market velocity is also sometimes called 'absorption rate'. As we said previously, we are big fans of absorption rate or market velocity. We are strong believers that the market will dictate the price of your home quickly and it is up to the seller or listing agent to read the signs of the market.

We have included two screenshots for market velocity by conducting a search for the Ashbury neighborhood with recent solds from the last 3 months and the last 12 months.

You will see from the screenshots there were 17 homes sold in the 3 month period and 45 homes sold in 1 year. Based on the number of homes sold over the last year vs the number of homes available for sale, you should expect it to take less than a month to have your home under contract.

This is always conditional on not overpricing your home with the attitude of "let them make me an offer."

You can download the sold data on Redfin into a spreadsheet. You will see the following below the search results.

This will give you a CSV file with quite bit of data on the sale of the homes in your search as well as links on Redfin for each property. If you want to take the time, you can go through all of the previous sales and the pictures of each home.

Based on the downloaded information we found the following summary:

High Sold Price: $1,080,000

Low Sold Price: $508,000

Median Sale Price: $685,000

Average Sale Price: $703,000

High Sold Price per foot: $282

Low Sold Price per foot: $187

Median Sale Price per foot: $225

Average Sale Price per foot: $224

While pricing your home may seem complex at first glance, it's manageable when you break it down into these actionable steps and consider the 'velocity' of home sales in your area. Remember to account for factors like square footage, the number of rooms, and the condition of your property. Online tools like Redfin can be incredibly helpful to this end.

By remaining informed about the market trends and pricing strategies in your local area, you can make a more accurate estimation of your property's value.

Regardless, the buyer's in the market will correct you quickly. If they believe that you have underpriced your home, you will typically see a lot of showing activity, followed by multiple offers from multiple buyers.

If you overshoot the price of your home on the high side, you will see little to know showing activity and zero offers.

If the later scenario happens, it will be incumbent upon you to correct your asking price to a price that brings showing activity to your home. If you aren't getting showings you won't receive offers.

The information is widely accessible, you can do this!!!

Ready to take the first step in listing your home? Create a Listing with SparkOffer today, and begin the journey towards a successful sale.