Knowing what your home is really worth is the main trick to price your home. If you price your home correctly, it will sell without fail. Instead of wondering if your home will sell, you should be asking yourself, “am I willing to sell my home at the best price possible?”
One aspect that most people tend to forget is that time is a very crucial factor that can affect your actual selling price. How much your home is worth now, can be a total different story a few years later.
Here are some things to avoid when pricing your home:
• Do not pay too much attention on listing prices.
• Do not set your price competitively.
• Don’t let sentimental value cloud your judgment when pricing.
• Don’t rush in picking an agent that quotes the highest.
The main factor that can help you sell your house at its deserved price is to determine its true market value. How? Well, here are 3 interesting methods that can do just that.
Appraisal – This is the process of determining the properties true market value by letting appraisers inspect your home, comparing selling factors and attributes with flaws to other similar estates in the area.
The only downside of this is; the value set by the appraisal can be affected by the experience of the appraiser. Although this is not such a major factor, it is still something to keep note of.
Comparative Market Analysis – A real estate agent will research similar homes in the market that have been sold in the last couple of months, comparing them to yours thus basing the price on the search results.
Example: Let us say your property is a luxury home in Tampa FL, the listing agent will then search different prices of luxury homes that have sold in that same area with similar perks as yours, and those figures that come up will then be used to determine the value of your property.
Similar to appraisals, the downside of this is different agents may come up with different figures. It all depends on whom you choose to work with and on how much you trust the individual.
Automated Valuation Techniques – This is an automated method where you can utilize an online program to search information on different other homes similar to yours that are on sale. The information then is processed and compared to public home sale records, property distinctions and demographics that can determine the estates value.
Since this is all automated, fast and pretty reliable, using this technique has its downside. The program does not take into account different factors that can in-fact affect the overall value of your home.
Keeping in mind these factors can help you set a price that you home truly deserves.