Many homeowners struggle with pricing when thinking of selling their house. Although there are resources available to gather data and get advice, ultimately, the decision of how to price a property for sale belongs to the homeowner. If you price too high, the house sits on the market and is subject to multiple price reductions. Price too low, you lose money. Here are some things to consider when pricing your home to sell.
There’s No Dollar Value to Sentiment
One of the most challenging ideas for homeowners to comprehend when deciding to sell their home is that there’s no such thing as sentimental value. You may have spent years and years accumulating memories, raising children, celebrating holidays, facing challenges, overcoming obstacles, and building dreams — but those belong to you and cannot be sold with a house. Buyers don’t have any interest in purchasing your sentiments. Instead, they want to imagine themselves making memories of their own.
The Changing Tides of the Market
You may not get out of your home what you’ve put into the property. Pricing your house isn’t as simple as figuring your investment and adding ten percent for profit. When pricing your home to sell, it’s important to evaluate current market trends. Consider whether you’re in a buyer’s market or a seller’s market. Assess interest rates. Understand that certain seasons see higher success rates in real estate transactions. Determine when it’s the best time to sell and when you’re most likely to get top dollar for the sale of your property.
Home Valuation Calculators
The Internet has delivered instant gratification and increased the demand for on-the-spot answers. It’s super easy now to open a web page, type in a few key bits of information, and receive an estimate of what your home might be worth – in seconds! Although estimates generated online can give you a rough idea of where to start when pricing your home, they’re far from accurate. Online valuation calculators process data such as the location of your house, number of bedrooms or bathrooms, size of the property, and the year the home was built. However, these calculators lack the human factor. Computers have no way to assess appreciation or depreciation of a neighborhood, the condition of the home or the landscaping, upgrades to the house, etc. Go ahead and get the free estimate if you’d like, but don’t rely on that estimate as a sole means for pricing your house to sell.
Listing appraisals, also known as pre-appraisals, may help you hone in on the best price for your house. You cannot use it to satisfy the buyer’s lender’s request to have the home appraised, but having the home assessed by a non-biased, third-party professional may give you peace of mind. The appraiser uses data similar to the valuation calculators but also determines the actual square footage of the property, and how well the house has aged. Combining the data, a comprehensive market analysis, and personal assessment, the appraiser determines what he or she believes is a fair market value. However, there’s as much art to appraising a home as there is science and it all boils down to opinion. Furthermore, the appraisal has no value to anyone other than you and can cost between $300 and $700. In actuality, your real estate agent can provide the same service.
Your Real Estate Agent
Your agent also uses data and a comprehensive market analysis to determine the fair market value of your home but also incorporates experience and expertise in a particular niche. Your agent, therefore, might do a better job of determining what your house may be worth. Your real estate representative can also help you stage your home for showings and advise you about small repairs and upgrades to add significant value to your home.
Scout it Out
With the home valuation calculation, the pre-appraisal, and your real estate agent’s advice, you’re probably well-equipped to price your home for sale. However, if you’re still in doubt, scout it out. Tour other homes in your area that are listed for sale and compare those houses to your own. If you were a buyer, which property would seem to be the greatest value?
Remove yourself from the equation by leaving out the sentimental value or the awareness of what you paid for your property. Take advantage of the tools available to help you understand the fair market value and what your home may be worth. Then, price your home competitively.
Your real estate agent is the best source of information about the local community and real estate topics. Give Charlotte Trone a call today at 505-350-0099 to learn more about local areas, discuss selling a house, or tour available homes for sale.