Once you know your home’s true value and have a price range in mind, it’s time to nail down the a final listing price for your home. Here are a 5 tips I know will help you in that decision making process. Also check out the tool at the bottom of the page, this will give you a quick assessment of your homes true value.
1. THE PRICE YOU WANT AND DESERVE.
Can you shoot for the stars? Sure. You have put a lot of time, energy and resources into your home or investment property. You should be entitled to get what you want, right? Of course you are, but don’t sit on your thoughts too long. Please do not price the property too high. You may be wasting your time and a gullible agent’s time. There are other things to consider.
2. A PRICE THAT IS COMPARABLE IN MARKET VALUE TO OTHER HOMES SOLD IN YOUR AREA
Who sets the market value? Buyers and Sellers do. Buyers have the funds and you have the property. But establishing market value is not determined with just the two of you. The best way to find out the true market value is by asking an experienced Realtor (whom should have access to the Multiple Listing Service) to write up a Comparable Market Analysis and compare the results of such to Public Records, Zillow, Trulia, Realtor.com, etc. But trust me when I say this, don’t rely on the first sets of numbers you see. After considering your needs, a Realtor has many other tools that they use when determining the best list price and the most likely offer price.
3. THE PRICE A BUYER IS WILLING TO PAY
Just as you desire the maximum price possible, a potential Buyer is on the other side of the equation. Many Sellers fail to realize that a Buyer’s mindset is purchasing your property at the lowest price possible. On the other hand, educated Buyers who are working with a Realtor, most likely have a ceiling on how much they can offer based on their own set of circumstances. Each Buyer’s financial situation is different. This means don’t always accept the first offer, unless you know it is in line with the Comparable Market Analysis as described above.
4. APPRAISAL VALUE
This is where the tire meets the pavement. This is also where things can get complicated. The listing agent should have a good handle on the range of price. Yet a trained Real Estate Appraiser gives their opinion of value. If you have a qualified buyer on the other side, their lender wants to loan money towards the real value. They certainly don’t want to throw good money after bad. If the buyer paid for the appraisal, it’s in their favor, if the appraisal comes back at a higher value. If the appraisal comes back at a lower the agreed upon amount, then chances are the buyer will be renegotiating the contract with you. Try to set the listing price considering all of the items mentioned above and you will avoid a lot of aggravations.
5. HOW MUCH DO YOU NEED?
What if the offer is close to what you want? What if the Appraiser determines the value is lower than what the buyer offers? Then you the seller will need to make up your minds as to what price you will accept? Remember buyer’s circumstances determine what they can afford. Yet you have the home.
Let us show you the values of homes sold in your area. If you would like a FREE Market Snapshot, containing, accurate, hyperlocal, real-time MLS data, then complete the form below.. When it comes to setting the right price, we want to assist you in making an informed decision.
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Contact David Worth for more details regarding this article and other services provided by Worth Real Estate Company. 305-900-7854