Pricing your home can be challenging! Initially, the first step would be to begin an evaluation of your home based on the amount you initially paid within a 5% or 10% value; but realistically this is not always possible because in some cases, sellers view it emotionally instead of a business transaction. How much you spend in renovating your home can be an over improvement. YES! Some of these renovations usually do change a fraction of the price, but in today’s market the consumer is not looking to buy a renovated property, but just looking for a good deal and that’s what will get your home sold!
Conduct a research of today’s market. Compare homes that have been sold around your area by matching and reviewing the prices of current sales up to three-six months and one year ago. Go to open houses in your neighborhood; see what differs between your home and theirs’. Try to make an evaluation of how those homes compare to yours in terms of location, size, amenities and condition. Once this research has been conducted you will have an idea of how to price your home.
Contact your local Real Estate Professional to evaluate your home. Make sure that before you contact a real estate agent you have done substantial research on their company and what they can offer you. Once you have chosen the right Real Estate Professional, they will conduct a Comparable Market Analysis (CMA) of what your home is worth based on your specific criteria and market value.
Appraisals are an impartial and valuable tool. You will have to pay for this clear-eyed opinion, but the results will be well worth the cost. In addition to getting a price, having your home appraised before putting it on the market allows you to make repairs that could slow a sale and also update items that could get you a better selling price. Talk to your appraiser for suggestions on what they think would make your home more valuable, and then follow through with the appraiser’s suggestions.
When putting your house on the market you want to think more like a buyer rather than a seller. At times, sellers use sentimental value to try to attract a buyer, but this approach does not sell your home. Buyers are not looking at whether you have lived there for years or if your kids and grandkids grew up in this property. When you’re pricing your home, learn to think like a buyer and not like a seller. Be practical and sensible.
Taking into account everything you have explored from the CMAs, Realtor opinions, appraisals, and comparable local market information, you now have the necessary tools required to price your home fairly. You can start naming a high and/or low price once this information has been reviewed along with your real estate professional. You can also start to narrow your home to a fair market price and hopefully sell your home quickly.