Pricing Your Home to Sell
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Are you thinking about getting into the Real Estate Market?
A strategic sales plan is key to ensuring you set a price that fits your needs and makes sense in the current market.
Location, Condition and Price
There are always these three factors you will need to take into account when selling your home. There are only two that you can honestly control and those would be condition and price. Now of those two which is more important? Price. This is because price can usually correct poor condition but condition will rarely ever overcome a flawed price.
Understand the Local Housing Market
Remember home prices are very similar to weather and can be very different depending on location. The good news is that home prices have actually increased in many markets so reviewing comparables will play a big role in setting the price. Look at comparables for similar houses in your neighborhood and determine what the current demand is for a house like yours in your area? Are prices going up or down — and by how much? How many days are homes staying on the market? If they are on the market longer, is it seasonal. Doing this type of research correctly is considered an art to some because there is in fact some skill required in determining which comparables match. I would recommend contacting your local JCL Realty Agent to assist you in this process.
Get an Appraisal
An appraiser can cost you between $200-$500, depending on the size of your home and uniqueness of the property. The appraiser will come to your home and catalog the total number of rooms and amenities (fireplace, swimming pool etc.) and will also pull comparables from other nearby homes that sold recently. Once their assessment has been completed of your home which will include the comparables and your current market, they will provide you with an appraisal. This will be an evaluation of your property's fair market value.
Consider who is Buying and Selling in your Market
Know your competition? Who are the buyers, and why are they shopping? Do you live in an area that doesn't attract a lot of new buyers, where the shoppers don't have to buy but are just looking to pick up a bargain? Or are you competing against an excess of new houses from builders that are eager to sell, or maybe you are selling a newer home in an area where most of the housing market is on the older side?
Ask the Experts
During the interview of a potential real-estate agent; ask them about the current market conditions for your area and price ranges. Ask specifically about the absorption rate. This means in the current condition and with the current inventory, how long would it take the market to absorb, or in other words sell, all of the houses on the market? Also if the supply is much greater than the demand, ask the potential agent how they would price to offset that inventory.
Don't position yourself against your market but instead work with the market and get the most out of the sale of home.