How do you know what price to ask for your house when selling? It’s perhaps one of the most perplexing problems homeowners face when they decide to list their home on the market. But don’t worry; it’s not a matter of guesswork. Although you are at liberty to place any price you want for your house, you’d be better to consider pricing your home to sell. Here are a few things to consider when pricing your home to sell.
The Truth About Asking Price
Among one of the most painful truths to accept in real estate transactions is that there is no such thing as sentimental value. Whether you’ve spent one year in your house, or fifty years, you’ve made priceless memories. Those memories don’t disappear when you sell your home. They stay with you. Although buyers can be compassionate about your circumstance, they’re not willing to pay for your past experiences. When the time nears to put a price tag on your property, you should detach emotionally and look the experience as a business transaction.
The second painful realization is that you may not get out of your home what you’ve invested. Home values are subject to real estate trends, and the market shifts. Sometimes, that shift may be in your favor, and your home’s value may have increased. Other times, however, those changes mean your house may not hold the value today as it did when you made your purchase. Based on your reason for moving and your timeline, you may choose to refrain from selling until the market shifts again, but there’s no guarantee that it will, or that if it does, it will be in your favor.
Once you’ve separated yourself from the emotion and the initial investment, you can begin to apply strategies to price your house competitively to sell in the current market. There is a multitude of methods, but best practice suggests that you use them collectively for best results.
Online Home Valuations
Your first stop may be to check online for free home valuation calculators. These calculators base their assessments on data alone. They gauge your home’s location, size, and approximate value of homes in your area. What they lack, however, is the ability to assess the condition of your home, upgrades to your home, and neighborhood nuances. So while these free tools may be of some value to get you started in the right direction, they’re far from being accurate.
Your second tool to use is pre-appraisal. Later in the transaction, an appraisal must be conducted to satisfy the bank, and your pre-appraisal won’t apply. But when you take on that expense, you may learn not only what your home in its current condition is worth in today’s real estate market, but also a list of minor repairs, upgrades, and touch ups that could increase your home’s value by hundreds of dollars.
Research Your Area
Armed with the information from the home valuation and the pre-appraisal, go out into your area and tour homes for sale. Go to the open houses, walk through the properties, and gauge their condition and price. Imagine yourself as a potential buyer shopping for homes. You visit the other homes for sale, and then yours. Which is more appealing? That’s not to say you should price your home the same as your competitors. Just because a seller asks for a particular amount does not mean the buyers are willing to pay that price. It is, though, a way to gauge what’s going on in real estate in your area.
Ask Your Real Estate Agent
Next, your real estate agent will provide you with a report called a CMA, which is short for Comprehensive Market Analysis. Contrary to visiting houses currently for sale, this report shows you houses that have recently sold, sales price vs. asking price, and how long the properties remained on the market before selling.
Pricing your home for sale isn’t as simple as determining an amount you imagine is fair based on your investment, your home improvement projects, or your memories. Instead, it’s a systematic approach of employing several methods to gauge the current market value of real estate in your area. Trust your appraiser, the information from your real estate agent, and the experience you gain by viewing other houses for sale in your community.
Your real estate agent is the best source of information about the local community and real estate topics. Give Melanie McLaughlin a call today at 505-489-8504 to learn more about local areas, discuss selling a house, or tour available homes for sale.