Pricing Your Home
Pricing Your Home
The price at which you list your home significantly determines how quickly and easily it will sell. While you presumably want to get the best price for your home, you also have to use caution with how you determine that amount. You may be able to sell your home fast and without a substantial amount of haggling or negotiating by using using these tips to price for your home for the local market.
Consider the County or Property Appraisal Value
One of the simplest ways to get an idea for what price to list your house is to consider its county tax or property appraisal value. These values essentially indicate what your home could be sold for if you were to put it up for sale today. They take into consideration aspects like improvements, size, age, and location.
However, these values typically do not give an accurate reflection of the overall local real estate market and the values for which comparable homes in the area could sell. They reflect general real estate value amounts and do not give a clear indication of what type of real estate pricing the local market is actually capable of withstanding.
Nonetheless, you can use these values as a base point to determine at what price you might like to list your home for sale. They can be included with other considerations that may help you sell your home quickly and easily.
Prices of Other Properties in the Area
Another way to determine at what price to list your home would be to research and consider the price for other comparable real estate in your neighborhood. In many cases, the prices for homes in your area are good indicators of the condition of the local market and the typical price ranges for the neighborhood.
Even at that, however, the other prices in the area may not take into consideration factors about which you as the property owner may not be aware. If you base your home’s listing price solely on the prices of comparable properties in the area, you could price it too high or too low. In turn, you could hurt your chances for a quick and easy sale.
Hire a Real Estate Agent
When you want to better your chances of selling your home quickly, easily, and at a price that is to your advantage, your best option could be to hire a qualified and experienced real estate agent to represent you and your home in the local market. An skilled real estate agent will have experience with pricing homes like yours. With the agent’s help, you can get your home listed for sale at a price that will attract buyers and give you the dividends you want at the property’s owner.
Before your home is priced, however, your real estate agent should perform a thorough and fair assessment of it. Based on this honest and professional review of your home, your real estate agent should then be able to determine its listing price that will be based in part on:
- the condition of the local market
- repairs and improvements to the home
- your selling time frame
- the market value or how quickly the house can sell within 90 days
- the price per square foot
- the age of the home
- how many bedrooms and bathrooms it has
- any upgrade and features to the home
It is critical that you avoid hiring an agent who is eager to list the home for a price that is too high for the local market. Pricing the home too high could limit the number of interested buyers as well as opportunities to show the home.
A price that is too high could also raise the prices for other homes for sale in the area, essentially causing your home to be used as leverage by real estate agents representing other properties in the neighborhood. Further, pricing the home too high could cause your home to be on the market for too long, prompting buyers to wonder what is wrong with it and why other buyers have not been interested in it. Finally, you will probably have to lower the price several times just to get the house sold, causing you to sell the home for a price that is less than what you wanted.
A skilled real estate agent will avoid pricing your home too high. Instead, he or she will be able to determine a price that is reasonable and realistic, which could help the home be more attractive to potential buyers and sell quickly.
Selling your home fast could be easier if you price it for slightly under its market value. Pricing your home slightly lower than what it could otherwise be listed for may attract more buyers. While you will not receive the full market value for your home, you have the advantage of being able to sell it quickly.
This option could be the right choice if you are overly motivated to sell or you need to move quickly. Being transferred out-of-state, for example, could be a circumstance during which you may want to price your home slightly under its fair market value to attract fast buyers.
Accepting Other Terms
As the seller, your goal is to list and sell the home as quickly as possible at a price that benefits you. While this goal is not unrealistic, it may not take into consideration all of the buyers who are interested in owning your home.
To attract a wide array of buyers, you might want to sweeten the proverbial deal for your home by consideration offers that you normally would not accept as the seller. For example, you may want to entertain the idea of selling your home as a lease for purchase option.
This offer could bring in buyers who may not qualify for a traditional mortgage yet have the financial means to make monthly payments on time. You would still retain possession of the home while the lease-to-own tenants were paying on the home, however.
Another option to consider might involve paying the closing costs for the buyer. Some buyers may have enough for a down payment but lack the money to pay closing costs. You could sell your home faster by offering to pay closing costs for the buyer.
By considering terms that you normally would not allow as a seller, you demonstrate to buyers that you are genuinely motivated to sell and eager to move out of the house. You also attract a wider variety of potential buyers who otherwise may not make an offer on the house because they were not qualified for closing cost financing or traditional mortgages.
Adding the Wow Factor
Finally, when it comes to pricing your home so that it will sell fast, you should consider what you can do to the home itself to add the proverbial wow factor to its appearance. Buyers may not want to pay what you have your house listed for if it does not look appealing.
You can add to its appearance by sprucing up the outside of the home. Repainting the exterior and making repairs to cracked or warped vinyl can make the house look younger than it is.
Additionally, keeping your yard mowed, planting flowers, and removing junk from the yard during the time the home is listed can also make the home more attractive to buyers. You want your home to look inviting and well worth the price for which it is listed.
Pricing your home to sell quickly does not have to be a challenge. You can simplify the process and get professional help by hiring a skilled real estate agent who knows how to price homes to sell fast. You could sell the home for a price that ultimately benefits you.