Okay, so after reading our last post, you decided that you want to sell. You know that your home must be priced right to sell quickly, so how do you determine that value? It’s often not as easy as just picking a number that seems right. Here are some tips and strategies to help determine the right price!
Know Your Neighborhood
Although we all take pride in our homes and would like them to be worth a lot of money, the reality is: it is only worth what someone will pay for it. And how do we know what someone is willing to pay? Take a look at the other houses in your neighborhood or town. What are they selling for? If you neighbor Joe just sold his 3 bedroom ranch for $350,000 and you also have a 3 bedroom ranch, you can assume it will be a similar price.
You should have an idea of the current market trends, or at least hire a Realtor who does. This will help to determine a fair value for your home so that it is priced right and attractive to buyers.
Ask For a Comparative Market Analysis
Most Realtors should offer to do a Comparative Market Analysis (CMA) for your home. This is not an exact science, but it definitely helps.
Basically, they have to see what other properties, which are similar to yours, have sold in the last 6 months or so. If every Ranch in your town has sold for under $300,000, then you shouldn’t price yours for $350,000. An appraiser will not see that value because they are also going to compare it to other sales. Realtors try to be proactive by finding a number that an appraiser will agree with, making your sale much smoother. Here is a great article on how appraisers value homes: https://www.maxrealestateexposure.com/appraisers-look-real-estate-appraisal/
Present Your Home to Match Its Worth
You may love the bright red you painted in the dining room and all of the knick-knacks on the mantle, but buyers want a fresh start. They want to look at your home and picture themselves in it. So when you are ready to list your home for sale, de-cluttering and removing the “you-ness” of the home is important. Buyers see more value in a home that is clean, move-in ready, and not in need of repairs. Do all of those things first in order to get the price you want. This article explains 20 “Cold, Hard Facts” about selling, which can be difficult to read, but is also very helpful (and true).
In all seriousness, there is a small window of opportunity for your house to be very attractive to buyers. If you price it to sell, then it will sell quickly. Overpricing your home could mean that no buyers are interested, or it will stay stagnant on the market for so long that everyone will forget about it and move on.
Avoid this mistake by hiring a professional Realtor who knows their market and knows how to value your home. I can think of a great suggestion if you need one…