How to Price Your Home
How to Price Your Home
By Patricia Johnson
When you are considering selling your home yourself the one thing that you do not want to do is overprice your home. Today’s buyers are very price sensitive. If you overprice your home by one or two percent above the market value it will begin to lose its appeal to buyers after the first two weeks and by the end of the third week the interest in your home and the demand to see it is gone. In fact, you may not even get any offers or lookers. You do not have to worry about pricing it too low because the homes that are below the actual market value will normally receive multiple offers which can drive the price up to market value. In the end pricing a home is all about supply and demand. Make sure that before you set a price that you get your home inspected and appraised.
Tips on Pricing Your Home
Using factors such as the size of your home, the age or your home, and the condition of your home are meaningful points for a potential buyer so when you are ready to price your home take these factors and compare your home to other homes on the market with the same factors.
The next factor that needs to be taken in consideration is what are your needs because financing and time both have something to do with how you price your home. For example, if you want to get top dollar for your home you may have to wait for the right buyer to come along but if you have to sell in a hurry because you have to move due to your job or divorce you may have to plan a quick sale price.
If you are fortunate to offer an attractive assumable mortgage or easy seller financing this can be reflected in a higher selling price.
You also need to know your market because prices may rise rapidly and you may be able to get a higher asking price if you find eager buyers. If it is a buyer’s market where there is a large supply of homes but little demand then your home may sit on the market for awhile even if it is fairly priced.
There are also websites such as www.HouseValues.com and www.Zillow.com that you can visit to give you an idea of what your home is work You can also ask a real estate agent to visit your home and give you a free comparative market analysis before you set your price. If it would be possible, try to get a marketing analysis from three different agents. If there are other homes for sale in your neighborhood and they have an open house, you can go to them and see what their homes are selling for to get a comparison for your price.
Since you are selling your home yourself you are saving on commissions so when you are figuring a price to put on your home, you can subtract a part of the commission you are saving from the price you are going to ask for your home. How much of the commission to subtract is up to you but most will figure the percentage they are saving and take have of that percentage off. For example, if you are saving eight percent, then you would take four percent off the price you want to ask.