Finding the Value of Your Home
As it is winter, there are not a lot of homes on the market. Many sellers tend to take their homes off the market for the holidays. That means come spring; there will be a lot of homes for sale. I’m going to cover a topic that’s going to be important as the real estate market warms up. If you’re selling your home, the most important thing you can do to sell it quickly and efficiently is to price it correctly. So what is the right price for your home and how do you find it?
You need to think like a buyer or an appraiser when you are pricing your home. As a seller, you see your home in a different light. Houses are only as valuable as potential buyers or an appraiser makes it out to be. It is important to keep this in mind.
Here are two simple suggestions that will help you find the right price for your home.
- Analyze the Recent Market for a Comparative Price
This is a great place to start. Get an idea of what similar properties to yours are worth in your neighborhood. Look back on houses that have sold in the past six months. Remember to take in account homes that have similar amenities, and features as yours. - Weigh the Pros and Cons
This is another comparison, but it is to see what your home offers over the next house. The trick to this is to be honest with yourself. Make a list of pros and cons about your property – features that show favorably to potential buyers and ones that might need updating or aren’t available. Buyers do this with their agents and don’t hold back, do neither should you when making this list.
Mistakes to Avoid
- Estimating the Price Based on What is Owed
Unfortunately for you, what you owe has no bearing to what your home’s price should be. Buyers and appraisers do not consider this; therefore you shouldn’t either. - Using the Tax Assessment for Pricing
It can be tempting to compare your home to the price listed on your tax assessment. This is another inaccurate way to gauge the value of your property. Due to real estate changing drastically within the past eight years, tax assessments are not a valid tool to help find the right price for your home. - Don’t Overprice
Over pricing, your home can have consequences. If you price too high and then go low, this can cause buyers to walk away. It can also take your out of consideration when people are searching within a specific price range. It is important to price it attractively to avoid pricing yourself out of the market.
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Call me at (410) 320-6551 for a FREE home buying or selling consultation to answer any of your real estate questions.