Setting the right price for your home can be tricky business especially when dealing with big numbers in the hundreds of thousands, in which one can easily downplay the importance of a $10k here or there. In such situations, it is important to take a step back and think about how much it can affect the end result. Setting an unreasonably low price might lead you to lose that extra money you could have gotten for a down payment on a new car, a luxury vacation or in some cases even a year’s salary. On the other hand, pricing too high and being over optimistic about the market might lead to months of waiting for the right buyer.
It is necessary to price your house based on realistic assumptions of the present market conditions for optimum results. Some of the best ways to price your home are discussed as follows:
Listing Agent to Price Home
After you have a general idea of your house price, it is time to get the help of experts. Most listing agents will offer a free walk-through and a Comparable Market Analysis (CMA) of your house, keeping in view the current market conditions. Consulting with an experienced listing agent who can provide the knowledge of price, market conditions, and competing properties for sale can help the seller list their property at the best price for maximum results.
Pricing Home with Appraiser
If you are not comfortable with the work of a listing agent, appraisers are a great option even though they have to be paid as opposed to the free CMA of a listing agent. However, an appraiser will not only give you the best price, he will also help you to get an idea of what repairs and fixes should be done before putting your house on the market.
Pricing Home with Online Calculator
To get a general idea based on the square footage of the house and other specifics such as the number of beds and baths and neighborhood localities, online calculators are also a great place to start with. Although they do not cater to some details such as the view from the house or its distance from the main highways and airports, they will give you a ballpark estimate to help with your decision. The best thing about these online calculators is that they are free of cost and do a good enough job.
Market Knowledge for Pricing Home
While appraisers and listing agents will help you a great deal, it is always best to have as much knowledge of the property market in your area as possible. The final decision of your house price has to be yours and you can only do that correctly if you are aware of what the houses in your area have been selling for the past 3 months, 6 months and even a year. Websites like Trulia.com have trajectories of local markets which can also be of great value in helping with your decision. The effect of foreclosures and short sales should also be taken into consideration. If the number of foreclosures and bank sales is in your area is high, you might have to reduce your price in order to have a better chance to compete with the market.
For more information on how to accurately price your home while taking into account the current home sales, comparable properties, and market conditions, consult with a knowledgeable real estate agent in your area. Properly pricing your home is the first step in the successful sale of your property.