Nobody wants to live with the nagging fear that they settled for less than their property was actually worth. So, if you are thinking of selling, start off by looking at current pricing and recent sales of comparable properties. Then factor in current market conditions and the condition of your home. Today, the Internet makes that all very easy to do.
The Asking Price for Similar Properties
Simply visit your favorite search engine and type in the name of the city or town where you live plus the phrase, real estate. You will find plenty of Websites that make it easy for you to search the local MLS database to see what is for sale. Since you want to compare your home with other similar homes, limit your search to homes with the same number of bedrooms and bathrooms as your home. Of course, your home may be above or below median value so you must refine your search for information. Choose a price range that you know will include your home. If you have extra features that most of your neighborhoods do not have such as a pool or tennis courts, factor those in later. So for now, just search to determine the asking price for homes similar to yours in your area. Based on this research, how would you price your home?
The Sales Price for Similar Properties
This next step may require you to visit one or more of the large directory websites. Many of these sites also provide data for recently sold properties. What you want to find out is the actual selling price for similar homes in your area. Although when it comes to individual homes, selling prices are usually somewhat lower than asking prices, when it comes to median price data, you cannot always get an accurate picture for your home. That is why it is very important to compare data in your neighborhood or area. Keep in mind that most sellers price their homes a little over market giving the buyer room to bargain.
Current market conditions will affect your asking and sales price. In a stable market home prices do not fluctuate very much over time. However in a rising or a falling market prices can and often do change overnight. In a rising market it is not unusual for a home seller to enjoy the fruits of a bidding war when several prospective buyers vie to buy the home with progressively higher offers. This delightful condition for sellers is known as a sellers market. In a falling market it is not unusual for home sellers to be forced to lower the asking price, sometimes more than once to attract any bidders or offers at all. This fantastic condition for buyers and investors is known as a buyers market. In establishing a price for your home, you need to know what the current market conditions are and price your home accordingly. Remember, keep it very local as it is not unheard of to find prices falling in some areas of town, remaining stable in some areas and rising in still other areas.
The Condition of Your Property
Finally we come to look at the condition of your property. Here is where we take into consideration those extra features your home may have that others do not. On the positive side, maybe you are one of a few homes with a pool. Maybe you have hardwood floors and other homes do not. Maybe you added an enclosed patio or have solar panels. On the negative side, maybe your home needs painting, a new roof, or the services of a gardener in the worse way. As you might expect, you never truly get a complete return on investment for the positive aspects and the negative aspects loom even larger with buyers than the repair of correction would warrant. That is why it is such a good idea to put your home in prime selling condition before you put it on the market.
What Your Agent Might Say
With all your data at hand it is time to start contacting real estate agents unless you plan to sell on your own. A trusted real estate agent will go through the same process detailed above, that is consider current prices, recent sales, market conditions and the condition of the property to come up with a fair and reasonable selling price for your home.