Home Seller's Guide

Sellers: How to Price Your Home: Myths VS Truth!

Myths: When the time comes to price your home for sale, you may be tempted to start with the price you paid for it, add a healthy markup and call it a day. “I need more money from the sale of my home to buy the new one!” You want to price your home like the one that sold a year ago down the street. You would like to price the home at market value and add all the upgrades to the price of the home! Unfortunately, that strategy is unlikely to result in a true reflection of your home's market value.

If there is an agent out there that does a market analysis like the ones in the Myths-RUN!

 

Here are nine strategies to help you figure out how much your home is worth:

 

Truths:

  1. Abandon your personal point of view. How much will a ready, willing and able buyer be willing to pay for your home? Buyers don't care how much you paid for the home, how many memorable moments you and your family shared in the home, how much cash you need for the down payment on your next home or how much time and money you've invested in your home's hardwood floors, fresh paint, lush landscaping or other improvements.

  2. Ask for a "comparative market analysis" (CMA), which shows the prices of comparable recently sold homes, on-the-market homes and homes that were on the market, but weren't sold. The on-the-market homes are the "competition" for your comparable homes were eliminated from the CMA. Remember the market analysis is just a rough estimate of what your home could sell for aHighRangeand aLowRange. Find an agent to give you the best advice on how to make your home STAND out from the thousands of others to choose from in the market!

  3. Do your own market research. Go to open houses in your neighborhood and try to make an impartial assessment of how those homes compare to yours in terms of location, size, amenities and condition. Assuming all the asking prices were the same, would you buy your home or someone else's?

  4. Calculate the price per square foot. The average price per square foot for homes in your neighborhood shouldn't be the sole determinant of the asking price for your home, but it can be a useful starting point. Keep in mind that various methods to get square footage: tax records, appraiser, builder, and even the home owner.

  5. Market conditions can play a huge roll in getting your home sold. Few questions to ask yourself:  Are home prices in your area escalating rapidly or dropping? Are homes selling quickly? Will your home be on the market in peak spring home-buying season or the winter? Are interest rates low or climbing upward? Is the economy progressing or having challenges? Is it a buyer's market or a seller's market? Is the local job market strong or are employees fearful of staff reductions?

  6. Sugar coat the transaction terms. Some buyers have needs that may not just be all about PRICE. If you're willing to close escrow quickly, you'll attract buyers who want to move in right away. Throw in all the appliances is a great one for first time home buyers who are on a budget!  A lease-option can help first-timers who need down payment assistance. The more creative and innovative you are with the buyers you will get your home SOLD!

  7. Moving begins once you've decided to sell your home. Starting before you even put your home on the market can actually help with the moving process. For example, cleaning out closets, basements and attics means there will be less to do once the home is under contract.  Always get mover estimates in writing.  Confirm mover credentials. Movers should be licensed and bonded as required in your state.

  8. Might seem as though once a sale agreement has been signed that the selling process is complete. Not only is it not over yet, but some of the most complex aspects of a real estate transaction now begin

  9. A sale agreement sets not only a purchase price for the home, but also a series of terms and conditions. For instance:

  • Contracts routinely depend on the ability of a buyer to obtain financing, which is why most sellers prefer buyers with preapproval letters from lenders.

  • A growing percentage of transactions involve a home inspection, or a physical review of the home by a trained and independent observer.

  • Lenders will establish numerous conditions before granting a loan. They will want a title exam, title insurance to protect against title errors, termite inspections, surveys and an appraisal to assure that the home has sufficient value to secure the loan

 

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