You’ve decided to sell your house, and now you’re stumped about how to price your home for sale. You can ask anyone you want – gather opinions, collect data, do a money dance, but ultimately the decision of what price tag you should put on your property is yours. There are, however, a few ways to gauge the fair market value. Here are some things to consider when pricing your house to sell.
Kiss Sentiment Goodbye
Chances are, you’ve got some emotional attachment to the memories you’ve made in your home. However, those memories, as harsh as it may seem, have absolutely no value to potential buyers. No one is going to pay for the number of holidays you celebrated, the milestones you accomplished, the challenges you overcame. In fact, people want to envision their own memories in the making, the milestones they’ll overcome, and the holidays they plan to celebrate in what will be their home. Kiss sentimental value goodbye. Stay focused on the fact that the sale of the property is a business transaction.
What You Paid is Irrelevant
Your house may be worth less or more than when you bought it. Homes don’t always appreciate, so you can’t just calculate what you’ve invested and then tack on X amount for profit. Some homeowners who have to move for work or pressing conditions may lose money on their home. Lots of things influence real estate market trends including interest rates, the number of houses for sale, the number of buyers looking for homes, as well as the condition of the home, the property, and the neighborhood. If you have the option to wait it out until current conditions shift in your favor, great; but there are no guarantees.
Free Internet Home Valuation Calculators
Instant gratification is a powerful thing, and businesses on the Internet have learned how to capitalize on that luxury. There are infinite resources on the web that will tell you, for free, what your house might be worth. Keyword: might. These calculators assess data to determine a price based on location, size, and features. However, without the human factor, those cold calculations could be well off the mark. What about the condition of your home and how well it’s aged? How about the upgrades you invested such as the built-in swimming pool or the added sunroom? Those things add significant value to your home, but an online calculator wouldn’t know that. Go ahead and use the free tool – if for no other reason but to satisfy curiosity. But don’t stop there.
A listing appraisal, or a pre-appraisal, could give you further understanding of what your home might be worth in current market conditions. Here, a nonbiased professional gathers pertinent data such as comprehensive market analysis, public land records, and other information about your property. Then, having reviewed that information, the appraiser visits the property to visually assess its condition, obtain actual square footage, and determine its probable value.
An added benefit to pre-appraisals is that the assessment can help you identify problem areas in the home that, with minor upgrades and repairs, could add tremendous value to your home. The downside to pre-appraisals is that they can cost you hundreds of dollars, don’t count for the seller or the seller’s lender, and are subject to change from one day to the next as the real estate market shifts.
Your Real Estate Agent
Your real estate agent is an expert at selling properties. Agents are out there, in the trenches, every day dealing with buyers and sellers. They can not only determine fair market value and ways to improve value, but they specialize in niches that appraisers can’t touch. Your agent also uses a comprehensive market report and other data, just like the appraiser.
There are many ways to determine what your home may be worth, including scouting out the competition. Remove sentiment and awareness of your own investment. Take advantage of free tools like home valuation calculators. Consider having a listing appraiser assess the property so you’ve got a solid idea of what you’re dealing with, and trust the real estate agent you’ve hired to guide you in the right direction.
Your real estate agent is the best source of information about the local community and real estate topics. Give Maggie Clemens a call today at 619-800-1145 to learn more about local areas, discuss selling a house, or tour available homes for sale.