Placing a price tag on your home may be the most difficult part of selling your property. There is no sure-fire way to know how to price your house, and no one can tell you matter-of-factly how much you should ask. In essence, it can feel like a guessing game. Luckily, there are systems, tools, and processes in place that can help you find the best price when selling your house.
You Can’t Put a Price on Sentiment
The first and hardest thing to understand when pricing your home to sell is that you cannot include sentiment in the value of your property. There’s no denying you’ve to priceless memories stored up from your tenure in the house, but buyers aren’t willing to pay for your experiences; they want to make memories of their own. When it’s time to price your home to sell, detach your emotion from the business end of the transaction.
Online Home Valuation Tools
Online home valuation calculators have changed the way people start the process of pricing their property. It’s super simple and free to type your address into a website form and receive back a dollar amount. What isn’t convenient, however, is that these estimates are rarely accurate.
Home valuation calculators base their findings on data about your home’s age and location. There’s no guarantee that the data is correct, and the estimate lacks the human factor. In other words, the computer cannot assess the current condition of your home, any upgrades you’ve invested, or the size and condition of the property on which the structure sits.
Go ahead and take advantage of the home valuation calculation tools, but don’t let them be an end-all, be-all method for pricing your house to sell.
The Power of Pre-Appraisals
When you accept an offer on your house, the bank lending money to the buyer requires that the home undergoes an appraisal to determine its fair market value. Although you cannot replace this requirement with a pre-appraisal, paying out-of-pocket to have the house appraised before you list it for sale will help you not only understand its current market value but also discover ways in which you can increase the worth of your home.
Appraisers base their estimates on $500 increments. When your house has squeaky doors, cracked light switch or electrical socket covers, rusty doorknobs, out-dated cabinet handles or drawer pulls, all of these little items could equate to big bucks. Review your pre-appraisal to discover not only how to price your house to sell, but also what inexpensive projects you can complete that could make your home worth more.
Comprehensive Market Analysis
Your real estate agent will supply a report known as a CMA or a Comprehensive Market Analysis. This report displays data regarding recently sold houses in your area that measure up to yours to a degree in size, layout, features, and other considerations. The analysis will show you the asking price vs. selling price of these houses, how long each house was on the real estate market before it sold, and how many price reductions the property endured.
Asking price is different from selling price, and the two should not be confused. When a seller asks for a certain price, that’s how much they hope to earn. However, the selling price reveals what the buyer was willing to pay.
Talk with your real estate agent about the CMA, the pre-appraisal, the online calculators, and consider the professional advice of your agent when pricing your house to sell.
Seeing is Believing
Armed with all the right information, your next course of action could be to tour the houses for sale in your neighborhood. Walk in with the perspective of a would-be buyer and compare that property to yours. If you were the buyer, which house would be the better bargain?
The Value of Eye-Candy
Perceived value goes a long way. When someone walks into a move-in-ready property, they’re excited to get on with life in their new home. However, when potential buyers view a property that is dirty or in disrepair, they see projects and dollar signs which could cause hesitation or unnecessary negotiation in pricing. Talk to your agent about staging the house to increase its perceived value.
Your real estate agent is the best source of information about the local community and real estate topics. Give Robert Stewart a call today at 952-412-1290 to learn more about local areas, discuss selling a house, or tour available homes for sale.