How To Determine Your Home Value to Sell Your Home
If you are considering selling your home, you are probably meeting with at least a couple of different real estate agents. One of the discussion points will be about your home value and determining price. The agents may not have the same opinion about the market value of your home, and you may not agree with the agents. In this real estate market, now more than ever, it is important to get your home pricing right. Buyers are very knowledgeable, they know what sold, how long it was on the market and what upgrades it had.
How do you decide what your listing price should be? What questions should you ask the agents about their pricing recommendations?
1. You will want to know what has sold in the past 60-90 days at most, that matches your home size, age and lot size.
2. How long were those that sold on the market?
3. What price did they start out at, what price did they get an offer at, and what did they close at(could be three different prices)
4. What amenities or upgrades did the solds include vs what you have. While upgrades are nice, they are not dollar for dollar add ons to your list price. Currently those with upgrades tend to sell quicker.
5. What homes are pending, and how long have they been on the market? What were their original list price and what price did they go pending at?
6. Have any homes not sold? Why, too high, bad location, poor condition?
7. Based on the solds that match your home in size, age and lot size, what is the average price per square foot?
8. Now take that average price per square foot and multiply your square footage with it to come up with a price.
9. Determine, based on your home condition vs the other home conditions if you can add or subtract from that price.
10. With the price you have now, you will want to see what has sold in the past 3 months in that price range. Is your home a better value than those that sold? About the same, or not a good value?
11. Now you will want to see what is for sale in the price range you are going to list your home for. Are you offering more than those other homes for sale?
12. Now one more time look at those homes that match your home in size, age, and lot size. Where is your home priced? Ideally you want to be in the lowest 25-50% of homes for sale in your area, that match your home.
If the real estate agent you are talking with, can’t show you how they came up with their recommended list price, or after reviewing all the comps they will still list your home 10% or more over comparable homes, walk don’t run from that agent. They are doing what we call “buying the listing”. They are not helping you at all. Overpriced homes sit on the market longer, and sale for a lower price than other comparable homes. Not to mention the frustration that you have as a seller keeping your home in showing condition, all the showings you continue to have and continuing to own a home you want to sell.
If you are thinking of selling your home, contact me. I will help you determine an asking price that is realistic for this market.