Setting the Price
Setting the Right Price to Sell Your Home
Price is the first thing buyers notice about your property. It is important to determine the value of your house and price it accordingly. Setting the wrong price can hurt the sale of your home and cost more to you in the long run. Ultimately, the value of your house is determined by what a buyer is willing to pay or the “market value”.
If you set your price too high, then the chance of alienating buyers is higher. You want your house to be taken seriously, and the asking price reflects how serious you are about selling.
Several factors will contribute to your final decision. First, you should compare your house to others that are in the market. Your real estate agent will provide you with a Comparative Market Analysis (CMA). The CMA will reflect the following:
- Houses in your price range and area that were sold within the last six months
- Both the asking and selling prices
- Current inventory of houses on the market
- Features of each house on the market
From the CMA, you will learn the difference between the asking price and selling price for all houses sold, the condition of the market, and other houses comparable to yours.
3 Factors that affect the value of your home
1. The Perception
Go beyond your perception of your house. Understand how your house is viewed through the eyes of other parties (lender, potential buyer, appraiser and tax assessor).
2. The Current Market
Understand what kind of market you are in. The market is shifting constantly and can vary not only from state to state but from town to town and even neighborhood to neighborhood.
3. The Competition
Understand your competition and what nearby homes similar to yours have sold for—not necessarily what they are listed at.
Bryan Garcia knows the market. He can help explain the current market status for your town—even your neighborhood and provide a CMA for your area.