Pricing Your Home to Sell
Getting ready to sell? The more you know about conditions in your local market, the better your chances of getting the best possible price for your home. In many cases, making a smart deal and getting the best price come down to studying your market and being an educated seller.
1. Recognize that housing markets are local.
Demand will change depending on the price range and even the neighborhood. You need to determine what the demand for a house like yours is in your area? You have to look at what's being sold and at what price. Look at the comparables for similar houses. What are the trends? Are prices going up or down — and by how much? How many days are homes staying on the market? If they are on the market longer, how much of that could be seasonal? In many areas, spring and summer are the busy seasons. However, you also need to realize that the paperwork alone tells only part of the story. While sales and prices are public, many times seller concessions are not.
2. Analyze who is buying and selling in your market.
What's your competition? Who are the buyers, and why are they shopping? Are you competing against a flood of new houses from builders eager to sell, or are you selling a newer home in an area where most of the housing stock is older?
3. Assess the market where you plan to buy.
If you're selling one house and buying another, look at the market where you plan to move. In many instances it might be a great time to buy there so you try to sell quickly to buyer as quickly as possible
4. Ask the professionals.
When you interview real-estate agents, ask about the market conditions for your area and price range. Specifically, ask about the "absorption rate" or in the current conditions with the current inventory, how long would it take the market to absorb, or sell, all the houses on the market? If the supply is much larger than the demand, ask potential agents how they would "price to offset that inventory. Talk to a handful of agents. Look at your comparables. Taken together, that information will give you a pretty good idea of what your home is currently worth.
When it comes to selling your home, you are embarking on a transaction involving the largest asset you have. Why would not trust that to an expert. Many people when they consider selling their house themselves only see the savings on commissions but what they don’t see is the loss of their house being on the market longer or selling it for a lower prices.