There are several smart things that home sellers can do to get the price they ask for their home. If you’re in the market for selling, here’s what you need to know.
Homes that are selling for similar prices in the area are a good place to start when selling your home. These are sometimes referred to as “comps” or “comparable” because they reflect houses similar to yours or homes that share some characteristic or trait with yours, even if that characteristic is only location.
For example, a 1,200 sq-foot home that has recently been made over with an attached garage might be listed at roughly the same price as a similar-sized home in the same neighborhood.
The fact that remodeling has been done might not make that big of a difference, unless the home was originally worth less than what other homes in the neighborhood were when you bought it.
Sometimes, homes that are significantly smaller, or not as attractive, won’t sell for the same price as other homes in the neighborhood. What a comparable will show you is what your home might be worth, based on other similar homes near you, not what your home is actually worth.
Check Out Homes That Are Currently For Sale
Another good way to price your home right is to look at other homes that are currently for sale. Study the seller’s market very carefully. You can actually visit other homes on the market to get a really great idea about how the size, condition, and amenities compare to your home and what buyers are getting for the money.
Let’s say that you’re trying to sell your home that has a pool and an attached garage. If other homes in the area don’t have pools, or attached garages, you may have an immediate advantage, if all other factors are equal.
If most homes do have pools and attached garages, then your home’s amenities are no longer special in your neighborhood.
The idea is that, by standing out (in a good way), you make your home more attractive to a buyer – because they’re getting something in this neighborhood that they can’t get anywhere else.
Reasonable sellers know they have to price their properties similarly to market comparables if they want to be competitive in the marketplace. But, this doesn’t mean you shouldn’t ask for more money if you have more to offer.
Look At Comps That Didn’t Sell
Just as important as what’s selling is what’s not selling. Believe it or not, some areas don’t put a premium on certain amenities. If your home has huge yard, for example, and you live in the city, then this definitely going to let you sell your home for a premium price. If you live in the country, a large yard isn’t special, and a small yard is actually a disadvantage.
But, if water and sewer expenses are unusually high in the neighborhood, or there is an ordinance or laws that make owning a lot of yard costly, this can actually make your amenity a disadvantage to buyers who might want a low-cost and low-maintenance property.
This is also true for other amenities like pools. If you own a pool in a neighborhood that’s older (where residents are older), it could be a serious disadvantage. Why? Older people in the neighborhood may not use pools as much, and they’re expensive to maintain – not good for someone who is living on a fixed income.
So, look at what’s not selling and try to figure out why. Then, if possible, adjust your home to match what’s selling.
Are You Selling The Home Yourself Or Through An Agent?
If you’re selling your home yourself, without an agent, you might be selling too high. That’s because buyers are willing to pay more money when they know there’s a real estate agent behind the transaction. When it’s “for sale by owner,” there is no real estate commission. Buyers want a discount in these situations. If you don’t give it to them, it may make it difficult or impossible to sell your home.
Talk To A Real Estate Agent
Companies, like Abbotts Countrywide, are experts at selling homes. If you’ve never done this before, don’t be afraid to contact a professional. Yes, you’ll pay a commission to a real estate professional, but Many agents know how to price a home attractively so that the home sells. The commission is almost always worth the benefit of a quick sale.
Get an Appraisal and an Inspection
If you want to remove doubt from the buyer’s mind, get a home inspection done and get the home appraised. That way, the buyer doesn’t have to go through the expense of getting it done themselves and it shows you have a high level of transparency in the deal.
Patrick Foley is a private landlord and has also turned around a number of renovation projects for profit. He likes to share his insights online and is a regular writer for a number of property-related websites.