Pricing my home to sell
Homeowners, whether using a real estate agent or selling for sale by owner, have trouble when it comes to pricing a home to sell. There is a difference between pricing and pricing to sell. The real estate agent will try to price at market value or a little under to be competitive and the non represented owner will try to price the house above market to negotiate down.
There is a simple way to price your home to sale:
Start by finding
homes in the area that are similar or relevant to your home. This is done by finding homes that have sold within the past 3-6 months, as well as those currently on the market. These homes need to be close to the same square footage, number of bedrooms, number of baths and similar amenities such as a pool.
Your price should be some where close to the sales price of comparable homes sold in the area. If you see that the sales prices are a lot lower than prices of relevant homes currently on the market you can price your home competitively against those houses, although understand that you are now testing the market to see if you can get that asking sales price and it may not appraise for the sale amount. Which means, if an appraiser sets a market sales value lower than your sales price one of two things can happen. The buyer, if getting a loan from a bank, can pay the difference between the sale price or you can lower the sales price.
Take the information that you have gathered about the similar homes and adjust price up or down accordingly. People will often times buy something for .99 cents verses $1.00 it looks better. In home sales the rule is the same but move in $5,000 increments $95,000 verses $100,000. As well, when two items are very close to the same the cheaper price wins. Buyers are always willing to compromise on certain amenities for a cheaper price.
So, when pricing your home to sell you will need to use the comparable homes that sold as your base price and then look to strategically price your house more attractively than the competition. There is a method to the madness, so if you need assistance call your local agent with Rhodes-Porter Realty Group to help you price to sell.