Put The Right Price On Your Home
The ten main factors which you should consider when establishing the value of your home are:
1. Interest rates: If interest rates are lower, the potential buyers can afford to pay more.
2. Supply and demand: If there are many houses for sales in your area, they are your competition, especially if they are comparable to yours. Think of ways to set your house apart and make it more appealing to buyers. However, bear in mind that a few houses on sale are beneficial, as this can increase the prices.
3. Economy: The state of the economy influences buyers' confidence and successful debt management.
4. Location: You will have more chances to get a good price if you have key services in your neighborhood, such as schools, hospitals and shopping malls. Constant traffic problems, on the other hand, will push the price down a bit.
5. Condition of the house: This is another crucial aspect. If you have improved your home's features and kept it clean, you will probably gain a lot from the first impression it will make on the buyers.
6. Timing: Ask yourself whether you really need to sell. If you do, this will help you choose when to put your home on the market.
7. Size: Ask yourself if your home is more suitable for a family with many members or not.
8. Amenities: Does your home have features which are popular on the market, such as the latest built-in technologies?
9. Contract terms: Try to figure out how flexible you are when it comes to signing the papers. If are willing to carry financing, you may be able to get the maximum price for your home.
10. Attitude: Do you really want to sell?
In order to come up with a price that reflects your home value:
• Research the housing market in your neighborhood. Go online, read the newspapers and go through the free classified ads. You can even go to showings in your area just to feel the current market trends.
• Ask a REALTOR® to make a comparative market analysis (CMA) for you. A CMA will show you how your house stands in comparison to those which are available on the market and those which have sold in your area over the last year. The more similarities between your home and those on the REALTORS®' list, the more accurately the CMA will predict a price close to your home's real value. However, bear in mind that your listing price will not necessarily be price you will actually sell the house for. The CMAs are usually done by REALTORS® for free.
• Get an appraisal. If you have your home appraised, you can estimate your home's value on the current market. You will certainly need an appraisal if a prospective buyer asks for financing from a lender. Residential properties will be compared to similar houses which have sold in the neighborhood, while new properties will be appraised by estimating the cost of replacing their structure if they were destroyed.
To add extra value to your home:
• Clean it up. No matter the season, a spring cleaning will only do you good when you put your house on sale.
• Fix what needs to be fixed. Giving your home a fresh coat of paint will help it become more appealing to future buyers. Make all the arrangements to fix any broken tiles or dripping taps.
• Hire a home stager if needed. You will raise your home's selling potential by making it more attractive to buyers with the help of a professional home stager, who will advise you on how to minimize your belongings or rearrange the furniture. Many will also suggest your hiring personnel to clean, paint and do minor repairs.
What's the right list price?
Since the buyer will negotiate, your list price should be 2.5 to 5% higher than what you want the final price to be. The strategies of coming up with a price vary according to market trends. Make sure to price close to your desire selling price if there are many competing offers or lower that the current value if the market is rather inactive.
Bear in mind that it's easier to sell your home when it is listed for the first time. You'll get a lot of showing requests in the first weeks, as the agents are eager to attract their clients to the new offers on the market. However, if your price is too high and your agent can't sell it, your home will soon become old news. Potential buyers will also lower their offers, as they will think that you'll become anxious about selling it. Consequently, you might have to accept les than what you would have received in the first place.
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