How To Price My Home For Sale
How To Price My Home For Sale
Home Pricing Tips To Help Your Home SellThe top thought going through minds of most sellers during the initial phases of getting their home ready for sale is how to price my home for sale. Determining a price to set for your home that you are about to list for sale is not as easy a task as it sounds to be. Pricing based on how much you paid for the home and adding in the money you invested in improving and maintaining the home is not a realistic method to pricing
UNIFORM NEIGHBORHOOD PRICING COMPARISONS
Keep in mind certain home sales like short sales and foreclosures can skew the price range downward and if you only have 1-2 of those types of home sales in your relatively medium to large size neighborhood you can exclude those from your list. On the other hand if you have a small neighborhood and there are a number of short sales and foreclosure sales or your neighborhood is medium to large and there are a considerable number of short/foreclosure sales this does have an impact on the pricing of your home. Buyers have the access to the same information as you and if your neighborhood is plagued by a higher than normal rate of short sales and foreclosures this can have the tendency to steer buyers away from your neighborhood thus
Once you have established a price range for your neighborhood than you can start comparing your home to other homes in terms of features (bedroom, bathroom count, home square footage, and other notable features). The comparison should not just stop at comparing features but you also need to compare the condition of your home as compared to the homes that sold. Does the home have better appliances and finishes (premium carpeting, hardwood flooring, marble tiled bathrooms etc.) compared to the homes recently sold? If so your home price may tend to be slightly higher than recently sold homes.
Also compare the age/quality of your home’s components like HVAC system, age of the roof, driveway condition, window condition and more. If your home has a newer HVAC, recently installed roof, new windows then that represents a better overall condition of your home compared to neighboring homes that helps to justify a higher home price than other homes. If your home does have better components this is a big factor for buyers and you should make sure the buyers know about the newness of the various components of your home. Keep in mind though just because your home is the best in the neighborhood does not mean you can price it much higher than other homes. Price it too high and buyers can find a similar priced home in a neighborhood where your price may be low but the value they get and the long term price support is greater than your neighborhood.
If your home has challenges that other homes in your neighborhood do not have then this will have a tendency to push your home price down as compared to other homes. Additionally you need to be aware of home upgrades that can actually detract from your home’s value.
HIRE A REALTOR TO SELL YOUR HOME AND GUIDE YOU ON PRICING
A Realtor can give you a general ball park number about pricing your home without seeing the home but they also need to visit your home in person to give an accurate price. A home with more challenges would be priced lower than one without those same challenges and your real estate agent will know what challenges apply in your area. Maybe in your area buyers like the fact they can get plenty of yard space and your large acreage lot will go for a premium over others. Unless you were talking to home buyers and sellers on regular basis you would not know that your large acreage home could get a price premium and as a result you could be leaving money on the table if you attempt to price it on your own. Having someone with expertise and deep knowledge of your local real estate market on your side ensures you are positioning your home with the best price possible.
HOME PRICING TRICKS TO WATCH OUT FOR
On the other side some Realtors may come to you and intentionally try and under price your home in hopes of bringing in a buyer during an open house or drive by. Often times they may limit their home marketing during the first few weeks to methods that allow them to get the most exposure to buyers. That way if your listing agent brings in the buyer they also get the full commission for themselves. By having a better idea ahead of time of where your home should be priced at you are less likely to get taken by someone who does not have your best interests in mind.
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