Pricing your home is the heavy lifting that you need to do when you make up your mind to sell it.
A home’s price is determined by several relatable factors that are unique and different in some way.
It could be that you are considering moving to another area or that you simply want to live in an upgraded house, but selling the existing house can be just as challenging as finding a new one.
There would have been many questions on your mind. This applies especially to the price of your home, such as whether to price according to market value or above or below it.
Figuring out the sale value of your property can be complex and tricky.
It could be difficult to decide what features of your home can help you get a higher value and what cannot. Additionally, how to do pricing concerning the market value of the house can also be tough.
However, if done right you are not far from cracking a good pricing deal for your home while selling.
So, let’s take a look at some expert suggestions and guidelines below on how you can determine an appropriate price for your home for sale.
How To Price Your Home Appropriately?
Use Online Home Value Estimator:
The internet is loaded with tools to estimate your home value for sale. Using an online home value estimator can be a good start for deciding the price of your home.
You need to enter certain details and answer a few questions. As a result of which, the online home value estimator shall provide you with an estimated range of valuation for your home.
It usually finds the available data such as the current value of your home by comparing your property and its features with some other similar listed properties that have a recent sales record.
Online home value estimators shall only provide you with a reasonable price. They do not give the exact data required to do proper pricing for your home. However, it can still help you to get a kickstart.
Connect With a Local Real Estate Agent:
An online home value estimator can just provide you with an approximate idea about the pricing of your home as these estimators use limited data.
Therefore, the next step that you need to take is to approach a well-experienced local real estate agent.
The agent may consider the factors that an online home value estimator may not, such as the recent advancements, the locality of your property, and local buyer opinions and beliefs in the region.
Not only this but the agent may also tend to have inner information about the ongoing sales of homes in your area. The agent can provide you with the best piece of advice on valuing your home at the fairest price.
Conduct Comparative Market Analysis (CMA):
As the housing market conditions change dynamically with time, it is important to stay updated and switch the recent updates and trends for pricing your home rightly.
Conducting a comparative market analysis (CMA) is one of the best ways to price your home for sale appropriately.
You could ask your real estate agent to do this analysis. He/she should review and compare the information about the most recently sold homes in your local market. These are called ‘comparables’ or ‘comps’.
In other words, comparables are homes that are similar to yours and are recently sold. They could be similar in terms of amenities, structure and size, location, and so on.
These comps can be a good consideration when pricing your home for sale.
Know Your Housing Market:
It is crucially important to understand the housing market you are in. The pricing strategy that you shall adopt will be greatly influenced by this.
Usually, there are three types of markets based on which you can decide the pricing of your home:
In this market, the number of buyers is more than the number of homes for sale.
As a result, you can price your home slightly higher than the market value for your home, as the buyers here are contending for fewer homes.
In such a market, the number of homes to be sold is more than the number of buyers.
Hence, you are required to price your home slightly less than the market value for the house to attract buyers.
This type of market has a balance between the number of homes to be sold and the number of buyers for the same.
You need to make sure that you analyze your comparables and try to keep prices accordingly and compete to attract buyers.
Considerations When Setting Your Home’s Price:
While strategizing about the price of your home, you may fall for some common mistakes. That is why the below considerations should be viewed to specify the right price.
- Set aside your emotions to determine a realistic price for your home.
- Don’t overemphasize home improvements, as not all renovations and upgrades have higher ROI.
- Try to understand the buyer’s perspective while setting the price.
- Adjust the price or strategy as and when necessary.
To Sum Up
By applying the above guidelines for pricing your home, you are less likely to disappoint your potential buyers by quoting an overvalued price. You can be assured that you are not underselling your home.
Make sure that you are conducting a profound comparative market analysis and approaching a trusted real estate agent. The more data you collect, the higher the chances are that you will quote the right price for your home.
For more proficient recommendations, get in touch today!
Are you ready with your checklist for house hunting?
If yes, then ensure that you do avoid the most likely mistakes that may hinder you from buying your dream house. Whether you are house hunting for your first home or be it second, you may fail to commit these mistakes.
House hunting is not as easy as just visiting a few houses and choosing the best one. Along with following the best house-hunting practices, you also need to ascertain that you do not make mistakes that can cost you both time and effort.
Your house-hunting process can become more systematic if you are ready with the right pre-requisites.
So, let’s make your house-hunting process smarter and easier by diving deep into the four huge mistakes that you should avoid while house-hunting.
Not Getting Mortgage Pre-approval
You must have made up your mind about house hunting and may have also estimated how much you can spend. The next action step that you shouldn’t miss is meeting a lender and getting a mortgage pre-approval.
Get a mortgage pre-approval before involving an agent in your house search and starting the house-hunting process.
You may be at risk if you are trying to buy a house beyond your budget without mortgage pre-approval. On the other hand, you might also lose the chance of buying your dream house due to a lack of insufficient financial proof.
Hence, it is highly advisable to get the mortgage pre-approval once you have made up your mind to go for a house hunt. This will be advantageous to you in two ways:
- It will give you a clear idea of what amount of money you will need to spend as well as the exact amount of loan you will be able to borrow.
- It will help you gain the seller’s confidence for closing the deal when you get the house you might be interested in.
When you meet your lender to obtain the mortgage pre-approval, he/ she might ask you for documentation such as proof of income or your credit score. He/she might also evaluate your debts if any that already exist.
Once the verification is done your lender shall issue a letter of mortgage pre-approval if you are eligible. This will take you a step closer to making a strong offer while buying the house.
You Are House Hunting Without an Agent
As online house listings are available, you may think of going on a house hunt all alone. Probably, you might intend to save up on the commission.
But sometimes house hunting without an agent might cost you more or you may even lose up on the house that you have always dreamt of.
Also, usually, the seller pays the commission to the agent. Hence, you don’t have to worry about spending extra on the commission charges.
You might also get access to new house listings that wouldn’t even be known in the local real estate market where you are trying to find a house if your agent has a strong network.
With his expertise and knowledge, a good real estate agent can help you select the best options for your house hunting.
So, if you wish to make your house-hunting process more efficient, you should get the help of a real estate agent.
Ignoring The Price, You Can Afford
Ignoring the price that you can afford can be a significant mistake that you may make which will leave you dissatisfied.
You may likely fall for houses that are beyond your spending limits while you go on a house hunt. It is absolutely essential to be self-aware of how much you can afford.
Some houses may make you feel very tempted because of their interior, spacious rooms, high-end appliances, or top-notch location.
However, it is good to buy a house that pleases you, but if it’s beyond the price that you can afford, you may go into a state of stretching your financial means.
You may try to arrange the extra amount that you cannot afford. But you should also realize that arranging the extra amount can increase your expenses as you may require to pay interest if you are buying the house with a mortgage.
Sometimes, you may also control your emotions and try to buy some other house than the one you like which is beyond your budget. This will leave you with deep dissatisfaction.
This is why it’s important to recognize and consider the price range that you can afford. Your best bet is to identify and explore the house listings within your budget.
Not Considering the Locality
Once you have decided on the housing options to be considered further for buying, try to assess the neighborhood of the selected options.
Look for various factors in the neighborhood, because it is as crucial as buying the right house.
It shall not be a good choice to purchase a suitable house in a locality you may never prefer.
Evaluate the surrounding area, community in the neighborhood, availability of public transportation and necessary infrastructure, and the time to commute to places that you visit daily like your office, gym, and so on.
Also, ensure the availability of vital amenities that are important to you.
Choosing an unsuitable locality may again lead you to hunt for another house in a good locality.
It’s wise that you effectively consider the locality and neighborhood while narrowing down your housing options.
House-hunting is a challenging process but can be made effortless if you are aware of the problems that you may face and the mistakes that can cost you both time and effort. Buying a house is a big decision, so making rational and realistic choices without being impulsive can be immensely beneficial for you and your finances.
For making the right decision, get expert words of advice for your house-hunting need from Elite Properties. We buy houses in any condition and provide fast cash offers. Call us at 718-977-5462 today.