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How To Price Your Home
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As a seller, you want the highest possible price and the best terms
for the sale of your home; therefore, it's important to understand some of the factors that will dictate
just how much you can get for your home. The two biggest factors are market conditions and interest rates,
but there are other considerations when determining the right initial price:
- The value of your home is relative to the local market value - the same home located in another area
will most likely have an entirely different value.
- As with any item, the sale price of your home is affected by supply and demand. If you live in an area
with explosive job growth, a rapidly increasing population and/or limited availability of housing, then
it's much more likely that you will get a premium price for your home. On the other hand, if the community
is losing jobs or people a leaving in droves, then you'll be dealing with a buyer's market and most likely
will not get top dollar for your home.
- Your requirements in regards to a timeline will impact the price of your home. If you need to sell
quickly, then chances are you'll have less leverage and accept a lower selling price. However, if there
is no incentive for you to sell quickly, then chances are you'll hold out for the best possible
price.
- The price of your home cannot be based solely on what, you as the seller, want. Just because you want
$250,000 so that you'll have $100,000 in cash for a down payment on your next home doesn't mean you'll
get it. If there are similar properties in your area that are selling for $200,000, then chances are you
will not get the sale of your home at $300,000.
- The price that you sell your home at does not necessarily determine how much money you walk away from
the deal with. Consider two scenarios: first a selling price of $200,000 total; second a selling price
of $210,000 but with concessions of $5,000 in closing costs, $4,000 allowance for roofing repairs, $2,000
for repainting the exterior, and leaving the washer, dryer and refrigerator ($3,000 value). In the second
scenario, the final adjusted price is $196,000.
So it's obvious that home pricing and selling is part science, part marketing, part negotiation and part art.
Unlike math where 1 + 1 always equals 2, in real estate there is no single concrete calculation or formula.
Each sale is different, and for this reason you should do as much as possible research and preparation of your
home for sale. And most importantly, contact a Realtor to help you get through the process as effortlessly as
possible and with the maximum possible return on your investment.
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| Copyright 2005. Nancy Clark. All Rights Reserved. |
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