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Setting the price of your home is one of the most important aspects of selling it. Too high and potential
buyers won't even consider it. Too low and you cheat yourself. The following is a list of things to keep in mind when pricing
your property.
- Consider comparables. What have other homes in your neighborhood sold for recently?
What are other similar homes in your area priced at? How do they compare to yours in terms of size, upkeep, and amenities?
- Consider competition. How many other houses are for sale in your area? Are you competing
against new homes? More up to date homes? Older homes?
- Consider your contingencies. Do you have special concerns that would affect the price
you'll recieve? How much do you have to net? Do you have a deadline to sell/move?
- Get an appraisal. For a few hundred dollars, a qualified appraiser can give you an
estimate of your home's value. Be sure to ask for a market value appraisal.
- Ask a lender. Since most buyers will need a mortgage, it is important that a home's
sale price be in line with a lender's estimate of it's value. NOTE: Some mortgage companies use the "drive by appraisal" method.
This method is not an accurate appraisal as it tends to value the property location and surroundings more than the properties
actual amenities.
- Be accurate. Homes priced higher than 3 percent over the correct price take longer
to sell, if they sell at all.
- Know what you'll accept. It is critical to know what price you are willing to accept
before beginning a negotiation with a buyer.
- Hire a Realtor. Realtors price homes every day and are aware of market conditions
and the values of similar homes. They work with buyers daily and know how much a buyer would be willing to pay for a particular
type of property.
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