One of the most difficult aspects of listing your home for sale, is trying to price it appropriately. Most people have a general idea of what their home might be worth, but that price may not be what the fair market value actually is. The fair market value of your home, is what any buyer is willing and able to pay to purchase your home. This is why it is so important to make sure your home is priced appropriately. There are many factors that need to be taken into consideration when pricing your home effectively. In this article we will explore the vital criteria that facilitates a successful sale.
The first and probably most important aspect of pricing your home appropriately, is to find out what other homes in your neighborhood are selling for. This is called comparable home sales. By taking a look at other homes similar to yours in the same neighborhood, or nearby area, you will be able to see what buyers are willing and able to pay for a home similar to yours. There are a few different aspects of looking at comparable home sales, which we will explore in the next paragraph.
One of the main components that goes into comparable home sales is the aesthetics of other homes in the neighborhood. What do the other homes in the neighborhood look like in comparison to yours? How do they compare in terms of upgrades, amenities, and property conditions? Do homes in your neighborhood that have recently sold have updated kitchens, bathrooms, or a pool? What is the square footage, lot size, and lot location? Being able to generate a good comparison using these components will facilitate a good base price for selling your property.
Now that we have tackled the topic of using comparable home sales to help identify effective pricing, other important aspects to consider are your current property’s condition and its potential. Sometimes when homeowners are ready to sell their home, their home isn’t quite ready to be listed on the market. Often times, by looking at the home’s current condition and how it compares to other homes, the seller is able to identify some of the potential upgrades that are necessary before listing the home. The home’s potential can vary depending on the amount of work, or upgrades that are necessary, versus the ones that are highly desirable for increasing the immediate value.
Another important part of pricing your home effectively is understanding the value of its location. Is your home near shopping centers, schools, or hiking trails? Depending on the buyer of course, these could be very important factors in how quickly your home might sell. Cashing in on your homes location and marketing it to potential buyers, is a another crucial part of how to put a monetary value on your property.
Last, but certainly not least is the strategy of pricing your home. An old school way of thought was to price your home extremely high, with the idea that you could always take less. This can be tricky because it can deter a lot of buyers from even looking at your property because of the high price tag. The newer and more effective way to price your home, is to price it on the lower side. This strategy has been proven to be more effective at attracting multiple buyers, and therefore generating multiple offers on your property.
Again, determining how to price your home effectively can seem like a daunting task, but with the right information and a good real estate agent, you can create a sales price that is extremely competitive.
The Pujals Team