Property for sale: What is my house worth?
Pricing a house is tricky, but more than that it’s often one of the essential factors that influences a real estate transaction. As a result, setting the right price from the start is crucial. But, how can you know for sure what is your home worth? To use price in your own advantage, you have to plan your actions wisely. So, let’s unveil some essential tips you have to take into account before listing your house!
Even though three plus two always equals five, in real estate, things might not stand exactly that way. Why? Well, a house may have several prices, as some call it: the asking price of the seller (the starting price), the amount of money a buyer is willing to offer (the buyer’s budget) and the closing price (the price that puts an end to the transaction). So, setting an attractive price for your property may mean buyers will come at your door, however, it doesn’t mean that you’ll get that exact amount of money you’re asking.
To continue, make sure you understand from the start that the price of the house is not a pure reflection of how much emotionally involved you are with it or the amount of money you have invested in it! NO! It’s all about the other guy – the buyer! So, the best way to handle things is to set your listing price having in mind your target audience! This way, instead of having a property for sale, you’ll be a happy seller!
Do you have a property for sale?
Check out these top 3 tips! It’s essential to follow them!
- Discuss with your agent
It’s needless to state that the first thing you have to do when you want to put your property on the market is to hire an experienced real estate agent. He/she will bring their knowledge to the table and make the difference in the end for you. However, no real estate agent will demand a certain price, he/she is there only to advise.
Setting the price for your property is influenced by a variety of factors, many that you cannot anticipate if you don’t have an exact insight into the market! For instance, a CMA or a comparable market analysis that a Realtor will perform for you is essential – this will provide the necessary info to get a general glimpse of how things really are in the market you are trying to sell. So, the presence of such a professional in your transaction is a must!
- Do your homework
‘The house is worth that much because I know it!’ No, there is no such thing in real estate. Estimating the price of your home is serious business and should have its foundation on facts! Doing your homework right can actually get you that accurate and up-to-date data you need to make an assumption. But how can you gather that precious info? The numerous number of online sites available should be your starting point – such sites provide tracking data of recently sold properties and similar ones that are currently for sale! Taking this into consideration, you can get an insight of how things work in your area; but don’t forget to call in a professional – he/she might give you an official version you may want to analyze! Set an attractive price that matches your realistic expectations!
- Take into account the season and the location
When deciding upon the price for your property you should consider the season, the location, your target audience, but also the state of the market at that particular moment! In other words, as some say – the same property could be worth more money if it were located in another state or if the level of unemployment would be lower. So, plan your actions wisely to get the best deal on the market!
To sum it all up, setting your listing price is one of the key stages when trying to sell your property; more than that, it’s safe to say that the price will definitely influence the end result. Therefore, taking your time to get the magic numbers is crucial! Don’t hurry up things, it might just not be a smart thing to do right now! Instead, follow the above tips and tricks! It will turn out to be much easier, you’ll see!
- Lisa Ross
Thanks, Ivy! 🙂
- Jim Hix
Interesting article. I would like to take it a few steps further, Referring to Ivy’s “do your homework” comment, I agree, but that doesn’t include asking a Realtor for their opinion. A Realtor’s opinion (like the neighbor’s) is bias. They are looking for a listing, not the price that it will take to achieve a sale in the shortest period of time, for the most amount of money. Using market data will dictate the price. If one does a through job of researching the data, the appropriate price will be learned.
Seller beware; Using online sites such as Zillow, will not provide the most accurate data. A computer (to date), cannot calculate an accurate value. It takes time, research and effort to establish value. The first place to start is the local MLS data. Although, not 100% accurate, it is the source that Realtors use to inform their buyers and sellers, when they are researching values. The other is tax records, they don’t have the detail that MLS provides, but they generally will provide an accurate selling price.
When a Realtor makes a listing presentation, they can educate a seller on value, without telling them the price. The Realtor simply needs to do the homework and present the facts. This will enable the seller to determine value, with those facts and make the right decision, without someone else giving their opinion.
The research starts with physically viewing all comparable properties in the area of the subject property. Thoroughly studying and taking notes for the properties that are currently listed, pending settlement, expired, (off the market) and sold properties. The properties for comparison, would include “like” properties, preferably, model matches. Preferably, same builder, also, within a couple of hundred feet of the same livable square footage. As well, the same age category. Certainly within a close proximity to the subject.
It is extremely important to list the house at market value from the beginning. The concept of an “asking price”, a price higher then the market dictates, is a sure fire way to get less money and take a longer period of time to achieve a sale. Irrespective of the asking price, buyers will always submit an offer for less. However, if the market data supports the listed price, a seller can expect a buyer to pay that price if they are emotionally attached to the property. However, it is imperative that both the seller and Realtor don’t get emotionally involved. The selling of a house is a business transaction, sellers need to treat it as one.
Realtors should always remember the old adage; Price um well, watch um sell!
- Lisa Ross
Thank you Jim for your fantastic contribution and the saying ‘Price um well, watch um sell!’ is definitely something to remember!
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Yes, do your homework. I made much more money selling a house that way.
Ask at least 3 realtors for their opinion and look what other houses in your street go for.
Houses sell better when the sun is shining, the house is clean and uncluttered and all the rooms have an obvious function. If a bedroom has space for a double bed, put in a double bed; buyers hate guessing. Decluttered rooms with lots of light seem bigger: let the sun in or put in a bigger bulb.
Thanks for your fab tips, Lisa. 🙂