Pricing your house to sell can be tricky. It’s not as easy as recognizing what you’ve paid into it, and then asking for that amount in return. The real estate market is flexible and your house may now be worth more, or less, than what you’ve paid. Naturally, you want to get the most out of your investment, but how do you know where to start? Here are some tips and tricks for properly pricing your house for the real estate market.
1. Understand that your emotional attachment to the memories formed in your house do not add to the value. Your memories are priceless, but sentimental value does not apply to real estate, so even though it may be hard for you to part with your memories, your memories do not escalate the value of your property. As hard as it may be to do, separate yourself from your emotions and attack the sale of your property as a business transaction.
2. A good place to start gauging the potential value of your property is by examining your property tax statements. Property taxes are based on a percentage of your home’s perceived value, so by calculating the property taxes, you may begin to form a picture of what your house is worth. Of course, property tax statements are lacking the human factor, so things like upgrades, landscaping, and general condition of your property are not considered.
3. There are ample resources online where you can get an estimate of your home’s value. Online calculators or valuation tools were designed to assist potential sellers in pricing their house to sell. On that same token, the human factor is still missing. Online tools can assess things such as size, number of rooms, and the general area in which your home is located, but they cannot adequately assess your home’s condition. However, when you add the online valuation estimates to the picture that began forming when you examined your property tax statements, that picture becomes a bit more clear.
4. Independent appraisers are another way to get an idea of what your home is worth, and will be more accurate than the estimate you garnered from your property tax statements and online valuation tools. And in this case, the human factor is present and working to your advantage. When you receive an offer on your house, your house will undergo an appraisal and an inspection as part of the closing process to determine that your property is worth what the buyer is borrowing. By having an independent appraisal done ahead of time, you’ll know what to expect. You may also be able to use that independent appraisal as a tool to aid in the sale of your property.
5. Your real estate agent is going to be your most accurate source of information when it comes to determining the list price for your house. Your real estate agent will provide you with a Comprehensive Market Analysis, or CMA. A CMA will demonstrate recently sold houses in your area that are similar to yours in terms of number of rooms, size, and house features such as garages or swimming pools. The reason it’s important to see what the houses sold for, instead of what they were listed for, is because negotiations often alter the price. The CMA shows what buyers in your area are actually willing to pay, as opposed to what buyers are hoping to get.
6. See for yourself. Tour your community and visit houses for sale. Get a deep understanding of the competition. Get a hands-on sense of the condition of the houses being sold, and the prices attached to them. Combine that information with your property tax statements, online valuation estimates, your independent appraisal, and your real estate agent’s suggested selling price. All of the numbers should point to a specific price range for your property.
When you are serious about listing your property for sale on the real estate market, contact Real Property Solutions at 504-237-2942, and let us use our expertise to aid you in the process of pricing your house to sell. Remember to leave room for negotiations! A little bit of prep and planning can add a lot of clarity to your home selling experience.