Pricing Your Home

Pricing Your Home

The best resource in terms of pricing your home at a competetive level is with a good agent. However, the tips below will give you some hints as to how to determine what price point you should sell your home at.

  1. Check Comparable Listings and Sales
    Have a look at every similiar home that was or is currently listed in the same neighborhood over the past six months. What you want to do is determine what features the other homes have that yours does or doesn't. Using this comparative data will give you some insight as to what people are looking for, and how much they are willing to pay for it. A house that's been on the market for a long while may be an indicator that the features of the house, or lack there-of aren't priced at a place where people are willing to buy it.

    Some things you may want to compare are:

    • Similiar square footage.
    • Dividing lines -- you'll want to compare homes in close proximity to yours, homes across a highway, railroad, or other divisions. The closer to your home, the more accurate data you'll recieve.
    • Age -- If you're home is built in the 1950's and the house next door or in the neighborhood adjacent were built in the 1990's you won't get a good reading of the price. Compare apples to apples, not apples to saurkrauts.
    • Compare square footage if possible.
    • Compare amenities as well as bedrooms/bathrooms.

  2. Withdrawn or Expired Listings, Price Reductions
    There's a reason these homes listing expired or were withdrawn. Try and determine the common factors associated with them being withdrawn or expiring. Which brokerage had the listing? Was it was a company that usually does well with it's listings? Or was it a less experienced low budget brokerage who didn't spend time advertising or getting the property exposure?

    If the price of a home was reduced or reduced several times, that may be indicative of seller overpricing. Look at sold homes and determine if there were any price reductions prior, and compare how much the price was reduced from the original listing price. This may help you gain a starting point.

  3. Active Listings
    These matter in that they can compare to your listing, just keep in mind that sellers can ask for anything they want. Recent sold prices will give you a truer estimate on how much your home can be sold for. Active listing also give you an opportunity to ask yourself why a potential buyer would buy your home over your competitions. This research may also give you an opportunity to make some home improvements to increase the value and attractiveness of your home to a buyer. Go here to see how you can improve your homes value, or other seller tips.

  4. Market Dependant Pricing
    There are several market variances that can occur, the first being a buyer's market. Sometimes the market just isn't favorable to a seller. In these cases, a buyers market would mean that the buyer has the upper hand or advantage when it comes to them buying a home. Usually, when this happens, the local real estate market is down, and/or there is more housing inventory than buyers. This leaves housing prices much lower than they may normally be and buyers will be looking for bargains.

    In a seller's market, there usually is a larger demand for houses than there are for buyers. You can usually safely add 10% more to your homes price to the last comparable sale. So, a house that may have sold for $150,000 may end up selling for $165,000

    In a balanced or neutral market, home prices will be relatively... balanced. Meaning demand for homes is equal to the supply of homes. In these cases, you can adjust the price of your home for the market trend. Price your home towards the median price-range of sold homes.

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