Putting a price on your beloved property can be tricky. It has the potential to help or hinder your selling process. Set the price too high and risk scaring off buyers, but starting at a low price may cause you to lose money. We have put together a few tips to help you solve the complex puzzle of pricing your home to sell.
Check out comparable properties that are currently for sale.
Comparable properties include those in the same area (no more than a 1 mile radius from your home), of similar size and built within 3 to 5 years of your property. How are these properties priced? How long have they been on the market? If there is a home next door to yours that is for sale for $500,000 then you might be inclined to say that yours is worth about the same amount. However, you would be incorrect. If the house that's for sale for $500,000 has been on the market for over 60 days, the price is too high. If the price was right, it would be sold already. So when you check out comparable properties, take into consideration the difference between something that is on the market for $500,000 and something that SOLD for $500,000.
Note key differences between your home and comparable properties.
Considering upgrades and amenities isn't easy when you're trying to price your home because your opinion doesn't mean that someone else's opinion is the same. If you decided to close in the garage to make another bedroom then your opinion was that that was the best thing to do. Someone else may completely disagree and rather have a garage. So which is worth more? The extra bedroom or the garage? It depends on so many factors! Most home upgrades are tricky in this way, but the most important thing to keep in mind is the number of bedrooms, number of bathrooms, and whether or not it has a pool and a garage.
Consider current market conditions.
When you're looking at the comparable listings and comparable sold properties, keep in mind what kind of economy we're in. Take a look at comparable sold homes over the past 6 months. Do the prices seem to be increasing or decreasing? If the market is trending downwards (which it is, in most places) then you should expect to receive offers that are even slightly below the most recently sold comparable property.
Remember that markets are local.
Different areas have completely different markets. Prices in some places skyrocket, even in this economy, while everything else sinks. What is the demand for homes like yours in your area? If nothing in your area has sold for over 3 months, this could be a sign that demand for that area or your type of home is low, which can hurt your bottom line. Watch of housing trends in your area. What did the mostly recently sold comparable property have in common with yours? What was different? All of these things will affect price.
Know what your house is worth.
You've looked at comparable home pricing, you know what has sold around you, you know when it sold and how much is sold for, and you know the differences and similarities between your house and these others. At this point, you should have a pretty good idea of a price range for your home. If you're still completely in the dark, you can pay to have an appraisal done. An appraisal will be the most accurate representation of your home's market value as a mortgage company would see it. But... you can get similar information from us as well. At Kara Homes & Associates, we offer a Free Home Evaluation with no obligation whatsoever.
Don't trust the real estate websites like Zillow that give estimates of your home's value. They're just not accurate. They typically use data that could be over 6 months old, and our local market changes rapidly. Additionally, these online home estimate websites don't take special features of your home into account, or condition. It may call a home that is a few blocks away a comparable property, even though it's smaller, older, and needs a new roof. It also doesn't take neighborhood amenities into consideration, such as tennis courts, fitness facilities and clubhouses.
If you have any questions about pricing your home, contact Kara Homes & Associates today! One of our team members will gladly talk you through the process, give you our Free Home Evaluation with comparable properties that are local to yours, and do our best to help you sell your home.