When I sell my home, determining the asking price will be one of the most important decisions to be made. That alone will make or break my chance for a quick sale. In a market with declining home values, it is critical for sellers to do their research and know what their house is really worth.
Study the market: The more knowledge you have the better chance you have at pricing your home to sell. Several homes in my neighborhood are on the market. However, setting our price based on these listings is not the best pricing strategy. Knowing the asking price of your competition is important but it is not always an indication of what you will sell for.
A better way to determine a price point for your home is to perform a comparative market analysis, which looks at recent sales of homes in the area similar to yours. I plan to hire a realtor with knowledge of the local market such as recently sold homes, value trends, and price cut information so I can set my price based on current market conditions.
Interview several agents: Studying the market and picking the right sales price can be a daunting task for the average seller. That is why relying on the advice of a real estate agent can be invaluable. As long as the agent is truthful and has a good eye on the market.
If you ask around and one agent gives you a significantly higher selling price than the others do, there is a good chance he is trying to buy your business. This is unethical and can result in increased costs when your home sits on the market going unnoticed by buyers. To avoid this, I plan to meet with several agents and request comparative data to backup their suggested price.
Be realistic and objective: It is all too tempting to put my house on the market for the price I paid for it 5 years ago. After all, we added granite to the kitchens and bathrooms, installed hard wood floors and bought new appliances. However, home values have declined drastically since 2007, and setting that price will likely be too high. It is important to base the selling price on current market conditions not an unrealistic price tag based on what the home is worth to you.
When selling your house, it is important to put all emotions aside and focus on the sale as a business transaction. Buyers will not have the same sentimental feelings about the home that you do. The upgrades may in fact not be every buyer's taste. It is best to stay objective and focus on market statistics.
With the surplus of inventory on the market, buyers are looking for deals and bargains. If you price your house too high from the start, buyers will surely overlook it. By doing my research, enlisting the help of an experienced realtor, and keeping my emotions in check, I expect to sell my home quickly at a price point within my realistic expectations.
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