Setting the Price of Your Home
When setting a price, the important thing is to be realistic and business like. If the price is too high, you may not find a buyer and will eventually have to lower later, wasting valuable time on the market. If you price the home too low, you leave money on the table. With your agent, you should consider all of the homes that compare to yours in your area that have Sold. You should also consider all of the homes that are similar to yours that are “Active” for sale too, as they are your competition.
Regardless of what you originally paid for your home and the cost of improvements you have made, the only price that matters is what a willing buyer is willing to pay for your home. You may consider hiring an independent real estate appraiser with specialized training and experience, but a competent Real Estate Agent can give you an accurate home valuation. Also, don’t rely on your recent tax assessments for value as they are always low. Also, don’t trust sites like Zillow to give you an up-to-date value as its data lags behind the actual local market statistics. Such valuations may not be reliable indicators of value, so trust a good Agent to give you a professional market opinion.
Whether or not you get an appraisal, your REALTOR® can develop a comparative market analysis. This analysis will homes in your area that have recently Sold and may compare specific features of your home to others–the value of a corner lot, upgrades, a mountain or a city view, or an extra bedroom, for example. The analysis may also point out market fluctuations caused by the opening of a new school, business, or community attraction, as well as long-term trends. Your introductory price to the market is very important and you should trust your agent’s advise in the final pricing of your home.
Once you’ve decided on a price range, a good Agent can also help you calculate an estimated amount you might net from the sale. If you have owned your home for several years, you may have built up sizable equity. Equity is the difference between the value of your home and the balance on your mortgage. After subtracting what you owe on your mortgage, ask your REALTOR® what costs you will incur in closing. These may include title fees, taxes, a penalty for prepaying your mortgage, brokerage commission, attorney fees, and charges for preparing and recording documents.
When buying a home, emotions play a big part in the decision. But when selling, you should be detached from the emotion and strictly objective or rational. As a home owner, selling is all business. Pricing your home right and well is one of the 5 key factors in the selling equation and may be the most important.
Call me, Jimmy Eaton, at 801-404-0900 today and I'd be honored to give you a FREE market value of your home.
Blog Archive2016-02-25 09:21:56
Buyers NEED a Connection
When Your Home is Under Contract to Close
Receiving an Offer on Your Home
How to Show Your Home for Sale
Understanding a Listing Agreement
Setting the Price of Your Home
Preparing Your Home to Sell
The Science of Selling