In setting the list price for your home, you should be aware of a buyer's frame
of mind. Based on a list of houses for sale in your neighborhood (which can be
in the form of a printed list from us, or online search results that you've
found yourself), buyers will determine which houses they want to view. Consider
the following pricing factors:
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If you set the price too high, your house won't be picked for viewing, even
though it may be much nicer than others in the area. You may have told your
REALTORŪ to "Bring me any offer. Frankly, I'd take less." But in that list of
houses, yours simply looks too expensive to be considered.
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If you price too low, you'll short-change yourself. Your house will sell
promptly, yes, but before it has time to find the buyer who would have paid
more.
NOTE: Never say "asking" price, which implies you don't expect to get it.
To determine the proper list price, contact a REALTORŪ and have them provide
you with the following professional services:
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Furnishing comparable sales.
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Analyzing market conditions.
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Helping to determine offering incentives.
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Estimating your net proceeds.
Using Comparable Sales
No matter how attractive and polished your house, buyers will be comparing its
price with everything else on the market. Your best guide is a record of what
the buying public has been willing to pay in the past few months for property
in your neighborhood like yours.
We can furnish data on sale figures for those "comps", and analyze them for a
suggested listing price. The decision about how much to ask, though, is always
yours. The list of comparable sales we bring to you, along with data about
other houses in your neighborhood presently on the market, is used for a
"Comparative
Market Analysis (CMA)". To help in estimating a possible sale price for
your house, the analysis will also include data on nearby houses that failed to
sell in the past few months, along with their list prices.
This CMA differs from a formal appraisal in several ways. One major difference
is that an appraisal will be based only on past sales. In addition, an
appraisal is done for a fee while the CMA is provided by us and may include
properties currently listed for sale and those currently pending sale.
In the normal home sale, a CMA is probably enough to let you set a proper
price. A formal written appraisal (which may cost a few hundred dollars) can be
useful if you have unique property, if there hasn't been much activity in your
area recently, if co-owners disagree about price, and any other circumstance
that makes it difficult to put a value on your home.
NOTE: If you do order a market value appraisal, make it clear you don't need an
elaborate, or full narrative report--the kind that's complete with photos of
the house and neighborhood, a map specifying the site, and floor plans is
sufficient.
Some factors that affect the price
1) Location: You can't get away from this one. If your house is located
in a desirable area that is in demand, you will be able to get a higher price
than you can for the same house in a less desirable area.
2) Condition: A house that has been better maintained and shows better
will always sell for more than one that has had deferred (neglected)
maintenance and needs work.
3) Desirable amenities: If a house has amenities that are currently
popular in the marketplace, it will bring a higher price.
Methods of setting the price
Setting the list price for your home involves evaluating various market
conditions and financial factors. Talk to your real estate professional about
their methods.
