Knowing how to price your house is a vital part of succeeding in the real estate market. Pricing it too high will deter possible buyers, and pricing it too low will mean that you’ll lose money on the deal. While there are several variables to keep in mind while pricing your house, there are several ways to make the process more accurate and easier.
Hiring a professional appraiser to appraise your house is a great place to start when it comes to determining the value of your home. Appraisers take into consideration the age of your home, new additions, damages and anything else that can affect the value of your home.
While it may not take aspects such as the current real estate market, location, and other external variables into play, it is still a great place to start.
Consult a Real Estate Agent
Real estate agents get updated on the current status and future outlooks on the housing market.
They can give you a professional view on the estimate of your house given the current state of the housing market. They can also provide you with rough estimates of what the house may be worth with future market changes.
This is especially useful after getting an appraisal since you can likely get a much better estimate while using the appraisal.
You’re not just a seller, you’re a buyer as well. Even if you’re not currently in the market to buy a new home, you can and should put yourself in a buyer’s shoes. Completely disconnect from your emotional attachment to your house.
Take a slow walk through the house while analyzing everything that you would be taking note of in a house that you wanted to buy. When you’re done, ask yourself if both the good aspects and the bad are worth anything in your estimated asking price range.
Study Online Housing Listings
You can learn a lot from reading housing listings. It’s especially useful to find listings with similar builds and in similar locations as your home to get a good idea of why the asking prices worked and why some didn’t.
Withdrawn and expired listings have certain things in common like their prices and conditions, descriptions and agents.
If you do notice a trend in the withdrawn and expired listing sections, you’ll learn about the areas to avoid and get a good idea of what prices may not work.
Active and pending listings can tell you what price ranges seem to be garnering attention at the time. Pending sales don’t list the final selling price online, but you can get this information by calling the agent for the home.
Leave Room for Negotiation
You don’t want to sell your house for a low amount and buyers don’t want to overpay. Many home purchases need negotiation to reach an amount that seems reasonable for both parties.
If you have a minimum amount that you’ll take for the house and a maximum amount of what you think the house is worth, try to meet somewhere in the middle of those values. This leaves room for negotiation on both sides.