Thursday, April 28, 2016

House Pricing Basics


The decision to sell ones home is a major one in a person's life. Everyone wants to get as much money as possible for their home, but how can you do that when everyone is going to be following the same strategy? You basically have two choices. Set the price for your home above what it is worth, hoping that the market is not overfull and that a desperate buyer will pay the price that you have asked. Or, you can price it below market value and hope that you get dozens of offers so that a bidding war breaks out on your home and the price goes up and up and up. But of course, you run the risk of only getting one or two offers and being stuck with significantly less money than you originally wanted for your home. Its essentially gambling, but understanding the art of supply and demand can help you make the right choice for your home.

A great way to help determine the possible selling price for your home is to take a look at what other houses in your immediate area have been priced for and what they have sold for. This should provide insight into what you can expect when selling your home. A good distance to consider is about a half to three quarters of a mile from your home, any farther than that and the possible price you could expect is not going to be very accurate. Also, while using this technique can give you an approximation, its only that. Other houses might be on more land, they might be closer to highways or closer to shopping, schools or anything else that can affect a house price. Also, try to only look at houses that were built at or around the same time as yours and houses that are close to the same size. Its a lot of qualifiers to take into consideration when trying to sell your home, but if done correctly, it can really help the average seller see what is in their ballpark, price-wise.

Another tool that is at your disposal is taking a look at previous sales in your area and looking at what the properties were sold for compared to what the seller was asking for at the beginning. You can adjust this for any improvements that your property has undergone, such as recent upgrade work or anything that can add value to your land. Now that you have some figures in front of you, try to find out why some homes ended up getting more than what they asked for in the beginning and why some went down. Feel free to consult experts in the field for this, as they might know more about it than you do. You can also compare the date the home was originally listed, to the date that it sold to try to get a handle on how long this process might take in your area from the time you start to the time you end.

Another interesting tool you can use when trying to sell your home is taking a tour of other houses in your area that are up for sale and take notes about what you like about them and what you dont and try to incorporate those ideas into your situation. Also, once you have determined the value of your home and what you want to sell it for, make sure you understand what kind of market you are entering into. If it is a sellers market, you can ask for a little more than the face value, but if it is a buyer's marker, you might have to ask for a little less. Understanding all the aspects of selling your home can help keep away surprises and help a seller get exactly what they want.

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