As mortgage rates ease, potential homebuyers are re-entering the market. Yet, with limited inventory, competition can be fierce.

To make your home stand out to buyers, it's important to price it right. That means doing a thorough comparative market analysis to determine what your property is worth. Here are some tips from top real estate professionals:

Location

Whether you want your home to be close to work or school or in a safe neighborhood, location matters. Knowing your budget and what you can afford to spend on a mortgage is important during homes for sale search. That way, you can search for homes in your price range in different neighborhoods.

Aside from the neighborhood, you must consider other factors, such as whether the area will continue to appreciate. If it doesn't, you may not be able to sell your home for what you paid in the future.

The property data relating to real estate for sale on this website comes from the SmartMLS Internet Data Exchange program, a voluntary cooperative exchange of property listing data between licensed real estate brokerage firms. Participating brokers are listed on the website. This information is deemed reliable but not guaranteed. Property locations, as displayed on any map, are best approximations only and have not been verified by the participating broker. Copyright 2023 SmartMLS, Inc. All Rights Reserved. The information provided is for consumers' personal, non-commercial use. It may not be used for any purpose other than to identify properties the user may be interested in purchasing.

Size

The size of your new home will be a major factor, especially if you have children and want to be close to their schools. It's also important to consider how many bedrooms and bathrooms you need and flex space.

The average home size varies by state and city, as shown below. It's a good idea to speak with a local real estate agent to better understand the properties available in your area and how they match up with your lifestyle.

If you don't have children or plan to have them soon, a smaller starter home may suit your needs. However, if you're planning on starting a family or have older parents thinking about moving in with you, you might need to look for something bigger. It's also important to consider the size of your furniture and whether you need to purchase any new pieces. This will help you avoid spending more money than you need to. A quality real estate agent can help you find the right home for your budget.

Features

Home buyers consider hundreds of factors when choosing a property. While location and size are key requirements, they also want a home with specific features. These can range from the practical – like security systems and heating systems – to the fun, such as a putting green or saltwater pool. Those serious about their purchase should take the time to identify their must-haves and compare them to homes on the market.

A property's features should be highlighted in its listing, with photos of the house and a description of what's included. It's also important to keep up with current trends and stay on top of what homebuyers seek.

Adding the right feature to a property can increase its value and attract buyers. A cozy fireplace, for example, can boost the sale price by up to 5.3% and shorten the time on the market by two days, according to Zillow's research. Other popular features include a laundry room, open shelving, and a wine cellar. While they may be expensive to install, many home additions can be easily reversed and reverted to their original state at the sale.

Emotions

It's normal to experience a mix of emotions when looking for your next home. On the one hand, you're excited to find a house that will fit your lifestyle and be a place to build memories. But the anxiety you feel over whether or not you'll be able to secure financing and make the right choice can also take its toll on your decision-making.

Buyers can be especially emotional when buying luxury homes, which often represent an investment in their future lifestyle. For example, a spacious suburban property may symbolize their wish to raise a family. On the other hand, a condo in a vibrant city neighborhood may align with their vision of a dynamic urban lifestyle.

Additionally, buyers can become emotionally attached to their chosen properties, envisioning their lives there and mentally arranging furniture and planning renovations. This attachment can make it difficult for them to consider alternatives or think objectively about their choices, which could ultimately lead to a bad financial decision.

Pricing

Achieving a price that sells can require a delicate balancing act. Overpricing will turn off buyers and cause a home to languish.

But pricing too low could mean a missed opportunity to attract competitive offers that drive the property up to market value, experts say.

Real estate agents can help set the right asking price by performing a comparative market analysis (CMA) that looks at recent home sales in your neighborhood. Ideally, they will include homes comparable in size and features and as close as possible to your home.

Your agent can also recommend what upgrades will add value and which ones are a waste of money. For example, a chef-grade kitchen is desirable, but you might be better off spending your money on other improvements that will make the most impact in selling your home.