How Should You Really Go About Pricing Your Home?
So you are considering putting your home on the market, but you are not sure how much it is actually worth. While you might have a general idea about a price range, but you want a more accurate understanding.Not too worry – you are not going to need to determine the price of the home yourself. Your real estate agent is your most reliable resource when it comes to conquering this task and a listing price expert! Your real estate agent will able to guide you through the process. They will also be able to help you understand how much your home may be worth and how quickly it may sell, based on a wide and complex array of market conditions and variables.
Your agent will consider factors like the home’s characteristics and your real estate market comparables when they are determining a price – and unlike many homeowners – remain neutral and keep the emotions out of it.
Here are some of the factors that agents consider when they’re pricing your home.
Your Real Estate Agent will Look at Comparable Properties in Your Neighborhood
What are Comparable Properties?
Imagine that you own a 4-bedroom, 2-bath single-family home built in 1990. Three neighboring single-family residences have recently sold for $300,000 to $350,000, so you presume your home value is somewhere within that range. But that assumption might not be the most accurate or effective?
The reality is that your neighbor’s homes feature different qualities than yours. Your neighbor’s house has 5 bedrooms; another neighbor has only 1.5 baths. One house has a fireplace and two car garage; while another has a larger yard with a pool. One house has top of the line appliances, while the neighbor has hardwood flooring throughout, while another has wall-to-wall carpet. See the differences?
These are the factors that your real estate agent will take into consideration when determining the price of your home.
Ask your real estate agent to walk through the comparables with you. They will be able to explain how he or she arrived at the numbers – this should provide you with some insight as to what your current home and future home is truly valued at. You might find yourself pleasantly surprised.
Understand that there Will be Trade-Offs
Finally, it is critical that you have a conversation with your real estate agent about a critical question: Do you want to sell your home for top dollar, or do you want to sell it on the shortest timeline possible?
Some homeowners and agents jointly make a strategic decision to slightly under price their homes, just by a small amount, to facilitate a quick sale. These are known as “motivated sellers” who want to unload their home as fast as possible. Often they may be moving to another state, or on a tight line of a personal reason.
However, there are many ways you can position your home for a quick sale at full price. Making small improvements, such as fresh paint and exterior landscaping, can be effective at creating a ‘wow’ factor. Staging your home is another great way to entice buyers to make an offer.