How to Price Your Home to Sell, Accurately
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If you plan to sell a house, then luck is on your side. Thanks to the latest real estate industry trends, it is safe to say that your house’s price will be substantial. Even with slowing sales activity and slow price adjustments, the appreciation of real estate in the past decade is still so great that the vast majority of home buyers will receive huge capital gains after selling their homes. But how big is the benefit? The income you get for the house depends on many factors, including whether you price the house accurately. Set the asking price too high and your home may sit down and get into trouble. Set the price too low, and you may leave your money on the table. Therefore, before selling a house, you need to consider how to price the homes for sale.
If you don’t want to bother, don’t care if you get a high price and want to sell quickly, a simple option is to find out the prices of other comparable houses in the area and then price your home below these selling prices. Someone may realize that you are motivated and make an offer.
Most sellers are not looking for fast sales. Most sellers want to get the highest possible price. Here are four steps to help you achieve this goal to determine the best price for your home.
Step 1: Do Your Homework
Even if you have sold real estate before, setting the price of a house or apartment or any other type of real estate is very tricky. Market conditions, the overall economic health of a city, province or country, and even the desirability of neighbourhoods all of which affect the supply and demand of houses in your community and affect the expected value and final selling price.
To better understand the current market conditions, it is best to do your homework. Research the sales trends in your community. Take a look at similar homes sold in the area in the past three months. Try to limit your comparison to similar houses. It makes no sense to compare 1970s bungalows that have never been converted into large new two-story homes with swimming pools-in fact; it’s like comparing apples to oranges.
If you have a good list of similar homes, consider the differences between one property and another-and consider how these differences affect your home. For example, is the sale price of a property with two garages higher than the sale price of a property with garages? Do 7-storey apartments with large terraced balconies sell more than 5-storey flats with small balconies? Has part of the house been remodelled? Renovation or renewal? When did the house go on the market, and how long did it last? All this information can give you insight into which buyers are shopping in your area and help you determine the house’s approximate perceivable price.
Step 2. Look at ALL the Listings
The list provided by your real estate agent (or through an online website that offers sales data) can give you a clear idea of the house’s sale price in your area or complex, but you should not limit your search to only the list of sales.
Requires “withdrawal” and “expiration” as well as “termination” and “relisting” lists. These are homes that are not for sale according to specific industry standards; about 40% of homes are not sold when they are first listed. By performing the same inspection on unsold houses, you can better understand potential failures and the price range that buyers may consider “too high.”
Step 3. Compare Square Footage and the Upgrades
As a seller, you need to be aware that some buyers are stuck in square feet. This means that you need to assess whether your price is in the same price range as the price of a similar property with a matching square foot area. This doesn’t mean that larger apartments will always sell more than smaller ones – usually, if you don’t ignore the square footage and focus on real upgrades or advantages, you may get a higher price. For example, if someone allows them to park their car and walk to work, they will buy a smaller house to buy more homes.
Another reason to be familiar with your house’s square footage is that the appraiser will assess this fact. Although this is not always the case, some lenders will pay for the property evaluation to ensure that they do not overpay. (No bank is willing to give buyers more loans than the home value.) If the cost of square feet of your home does not match that of a similarly sized home, the appraiser will need to find out the reason for the difference. If they cannot find a good cause, they will report the assessed value, which may be lower than your asking price (or worse, the agreed selling price).
As a general rule of thumb, the appraiser will use a 10% margin on the square footage calculation. This difference means that your 2,000 square foot house should fall within the price range of a 1,800-2,200 square foot house in the community.
Step 4. Look at the Overall Market
Finally, read the current market situation. Is it a buyer’s market? Has the supply built up? Are homes selling quickly in your community or complex? Do you currently have competition, including recent homes for sale in your area and nearby development projects that may attract home buyers to spend more on new construction?
If you are in a seller’s market, or your neighbourhood or property type is in high demand, please consider increasing the price at the current market price. The market is likely to absorb this small price increase-which means you have extra cash in your pocket.
On the other hand, if you find that the market is stagnating or falling or finding yourself in a buyer’s market, consider lowering the asking price. Keep in mind that in this case, most buyers will try to negotiate, which may mean a further reduction in the final price.
Selling a house can be emotional, making it difficult to value the property. But don’t get me wrong: Pricing is an important factor in the speed of home sales and whether the seller can get the listed price or higher. Consider seeking professional advice during this process, and keep these steps and strategies in mind when finalizing the house price.
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