When selling your home, choosing the right price point is one of the most important decisions you will make. Your asking price determines your profit or loss, and how fast your home sells.
Deciding what price point to start with can be confusing. These tips will help you figure out how to get the maximum price for your real estate offering.
Get an Appraisal
Contact a local real estate appraisal service. The appraiser will visit your property and conduct a thorough inspection. Based on their observations, they will estimate an overall value. Property value is based on factors like location, condition of structures and landscape, features and improvements, and size and age of the lot.
If the appraisal estimate is a little lower than you like, you may consider renovations or redecorating to raise home value.
Research Local Home Values
Next, do some research on real estate in your area. Explore free online home valuation tools to get a better guess of the value range of your home. You can also see information on the property, like the year the home was built and the number of rooms.
Check the home values in your neighborhood. Pay special attention to any homes that are currently for sale or recently sold. Compare your home with those that have similar features. Some important home features to consider during this comparison are:
- Number of bedrooms
- Number of bathrooms
- Age of home
- Size of property
- Square footage of home
- Location (proximity to schools, shops, commercial areas, etc)
Look at homes in similar neighborhoods around your city or metropolitan area as well as your immediate neighborhood. List 10-15 that are most like your property. Make note of similarities, differences, and any other information that might affect home value.
Calculate a Range
Compare your research data to your appraisal estimate. From that information, decide what is the absolute least you would accept for your home. This will be the low end of your price range.
The high end of your price range should be as close to your estimate as possible. But your estimate may not be a realistic asking price.
Here’s an example. Your home is valued at $650,000. During your research, you notice that similar homes that have recently sold are priced around $575,000. Unless your property has an incredibly special feature or asset that others do not, your home is unlikely to sell for the full value. In that case, the high end of your price range should be adjusted for current market conditions.
By researching recent home sales in your area, you will see what others have gotten for properties like yours. Compare those numbers to your appraisal estimate. Then decide how much you think you can reasonably get for your property.
Having a price range rather than a solid asking price eases negotiations.
Get Professional Help
A licensed, local real estate agent can simplify the process of pricing your home to sell. Agents can access timely and accurate information on property conditions and values that non-agents cannot easily access. They analyze and interpret home value trends and market conditions every day, which allows them to more accurately estimate effective asking prices.
Whether you seek professional guidance or decide to do it yourself, take your pricing decisions seriously. The small investments of time and money spent can pay off big at closing.