Naturally, you hope to get a return on your investment when you decide to sell your house. If not a significant profit, then your goal is to at least break even. You definitely want to avoid losing money in the transaction. But how do you know what your house is worth? How long will it take to sell at the price you ask, and how many times might that price be reduced? There are a lot of contributing factors in pricing your home to sell.
Forget about emotional attachment.
This is perhaps the hardest part. Buyers aren’t willing to pay for your sentimental value. Regardless of how many holidays you’ve spent in the home, or whether or not your children grew up in that house, when it’s all said and done, it’s still a house for sale on the open market. Your memories are priceless treasures to you, but hold no value for potential buyers.
Property value calculators
Many people, when considering the sale of their home, may opt to use online property value calculators. There’s nothing wrong with that at all, but it should not be your only method for determining what your home is worth. In fact, online valuation calculators aren’t able to assess the condition of your house, upgrades, landscaping, or other contributing factors. This is why you should consult with an experienced real estate professional.
The real estate agent with whom you choose to work should provide you with a comprehensive market analysis, also known as a CMA. The comprehensive market analysis gathers data about recently sold properties in your area that are similar in size, style, and features. Recently sold produces a different view from asking prices. Just because a seller asks for a certain price does not guarantee that it sells at that price. The house is only worth what buyers are willing to pay. Trust your agent’s advice, but verify for your own satisfaction.
Some sellers choose to take their investigation about pricing their home to sell further by obtaining an independent appraisal. Appraisers typically work in $500 increments, so small upgrades such as light switch covers, electrical socket covers, faucet handles, door handles, and fresh window screens can increase the value of a property. Although an independent appraisal is an out-of-pocket expense, it can be well worth the investment in the long run.
Know the market.
The real estate market trends fluctuate a great deal, and current market conditions may influence buyers. In a seller’s market, there’s usually a low inventory of houses and an abundance of potential buyers. A seller’s market spawns competitive offers and, in some cases, bidding wars. On the contrary, a buyer’s market indicates fewer buyers with more available houses. In a buyer’s market, sellers may have to lower their asking price to entice buyers to take action. Based on market trends, you may choose to hold out on selling your house, or speed up the process to capitalize on market conditions.
Scope out the competition.
Visit other homes for sale in your area that are comparable to your own. In what kind of condition are the houses you visit? What do those houses have that yours doesn’t? What does your house have that sets it apart from the rest? In some cases, you have to see it to believe it. Personally scouting out the competition can help you garner a realistic understanding of the value of houses in your area.
Based on all of the information above, determine what you feel is a fair price, even if that price is less than you’d originally hoped. Over-pricing a house can extend its stay on the real estate market, which could lead to multiple price reductions. Not only are price reductions frustrating for you, but they can also signal desperation to potential buyers.
There are many ways to determine the price you should place on your home for sale. Detach emotionally. Don’t count on your investment as a measure of what your property is worth in today’s market condition. Explore online valuations, but back those up with the advice of a qualified real estate professional. Consider an independent appraisal, especially if it can help you make minor upgrades for a major boost in the home’s value. Explore the competition, and price your house fairly.
Your real estate agent is the best source of information about the local community and real estate topics. Give VS International Properties a call today at 407-513-4722 to learn more about local areas, discuss selling a house, or tour available homes for sale.