Something held in common by all home sellers is the desire to sell in the least amount of time and for the most amount of money. To achieve that goal you must first price your house appropriately. If you price too high your house will not sell. On the other hand, if you price too low you stand to lose a considerable amount of money. Therefore it is essential that you determine the fair market value of your home.
There are two general factors to consider when determining the sales price of your home: 1. Your personal time schedule. If you are under pressure to sell your house quickly it may be wise to price your home slightly below fair market value to attract more potential buyers. If you enjoy the luxury of selling at your own pace then you can price your home closer to the fair market value, giving yourself time to find the right buyer.
2. Current Market Conditions. If there are many homes for sale in your area then you may have to discount the price of your home to help it get more attention. Conversely, if there are few homes for sale in your area then you can expect a sell closer to your asking price. What is the fair market value of your real estate?
There are a couple of methods by which you can arrive at a fair market value for your property on your own. In an agent-assisted real estate transaction, the agent can help you set an asking price by looking up recent comparable home sales in the local multiple listing service (MLS) database. Most likely, you do not have access to the local MLS system for this information.
For this reason, it may be beneficial to pay for a professional appraisal of your property. Appraisers also have access to recent comparable home sales and use up to three methods of arriving at a fair market value for your home. When a buyer seeks financing to purchase your property, they will need an appraisal to establish value in the eyes of the lender. So it doesn't hurt to have that value established in the beginning. Showing a buyer a professional appraisal of the property can give the buyer added comfort that your asking price is reasonable.
You can expect to pay $300-$500 for a professional appraisal. Due to the cost, many home sellers try to establish a fair value on their own. If this your preferred method, consider the following.
What are similar homes selling for?
Other homes that are for sale in your neighborhood are probably your best resource for determining value. Visit these houses and gather as much information as you can about the homes and then compare those homes with your home. Compare square footage, number of bedrooms, number of bathrooms, lot size, and any unique features. Seeing what similar homes are selling for will give you a good idea of a price range you can expect for your home.
Search the Internet
Most states require that property transfers be published in a local newspaper, so you can easily search the online archives of recent home sales in your area. You can also search real estate websites for homes that are comparable to yours to see what they are listed for, but remember, this does not give you knowledge of what the properties actually sold for. |
