Pamela McArdle's Blog
Before you list your house, you'll need to establish a competitive price for it. That way, you can increase the likelihood of stirring up plenty of interest in your house as soon as it becomes available.
Now, let's take a look at three best practices for pricing your home.
1. Evaluate the Real Estate Market
The current real estate market's conditions can impact your ability to sell your residence. However, if you study the real estate market closely, you can differentiate between a buyer's and seller's market and plan accordingly.
In a buyer's market, the number of home sellers exceeds the number of homebuyers. As such, you likely will need to establish an aggressive price right away to separate your house from the competition.
On the other hand, a seller's market favors home sellers over homebuyers. If you're operating in a seller's market, you may be better equipped than ever before to earn a significant profit.
To differentiate between a buyer's and seller's market, examine the prices of recently sold homes and available homes in your area. This housing market data can provide deep insights into the current state of the housing market. Plus, this data can help you understand how your residence stacks up against the competition.
2. Conduct a Home Appraisal
Ultimately, a home appraisal can make a world of difference for any home seller, at any time.
During a home appraisal, a professional appraiser will examine your house both inside and out. Then, this appraiser will offer a valuation of your property based on his or her findings.
A home appraisal involves an evaluation of the current condition of your home, your house's age and your neighborhood. Therefore, if you complete a home appraisal, you should have no trouble using the appraisal results to help establish a fair price for your residence.
3. Collaborate with a Real Estate Agent
When it comes to selling a house, there is no need to work alone. Fortunately, if you collaborate with a real estate agent, you can receive expert insights into all aspects of the home selling cycle.
A real estate agent is happy to meet with you and learn about your home selling goals. Next, this housing market professional will offer home pricing recommendations, ensuring you can make an informed decision about how to price your house.
In addition, a real estate agent will go above and beyond the call of duty to ensure you can enjoy a seamless home selling experience. This housing market professional will promote your residence to large groups of homebuyers, set up home showings and open houses and put together an engaging and informative home listing. Also, a real estate agent will always keep you up to date about any offers on your home.
Looking to list your home in the near future? Use the aforementioned best practices, and you can establish a competitive price for your residence and boost your chances of a fast, profitable home sale.
If you've lived in your home for more than a couple years, chances are you've grown rather attached to it. Whether you're selling your house because your family has outgrown it or your company has transferred you to another location, you're probably attaching a lot of sentimental value to the price tag. Unfortunately, sentimental value does not translate into dollars and cents in today's real estate market.
The emotions of prospective buyers will often play a role in their decision to make on offer on your house, but they're probably not going to pay more than the market value for your property -- unless there's a bidding war situation going on. One of the best ways to determine a fair and reasonable asking price for your home is to have it appraised by an experienced real estate agent. Their appraisal will be based on objective data, such as the selling price of comparable homes in your area. The location and condition of your home will have a bearing on pricing your home effectively, as will the prevailing market conditions and other factors. Although online estimates can sometimes give you a ballpark figure of what your house may be worth, a local appraisal is more accurate
A common misconception among homeowners is that a $10,000 home improvement expenditure should justify a $10,000 increase in the selling price of a home. Although that concept may seem logical, it unfortunately doesn't work that way in the real estate market. An updated kitchen, bathroom, or roof may make your house more appealing to prospective buyers and help it sell faster, but it probably won't have a dollar-for-dollar impact on the price buyers would be willing to pay. Since each selling situation is unique, however, your local real estate agent is the best person to consult regarding a fair asking price for your home.
Avoiding Home Seller Mistakes
In addition to overpricing their home, another mistake home sellers make involves three related activities: decorating, staging, and attempting to create curb appeal. In spite of a homeowner's best intentions, their decorating and home staging ideas may clash with those of the house-buying public. When you attempt to tackle home staging on your own, several things could go wrong.
- You could either spend too much or too little on making repairs and sprucing up your home's appearance.
- You could spend your time and money upgrading inconsequential features of your home, while overlooking the real important changes that need to be made.