What’s Your Home Worth?
5 Factors that Determine the Asking Price to Sell Your Home
Selling a home, even if you use a real estate agent, is a stressful experience, especially if you're trying to sell quickly. But before selling your home, you have to consider how much to sell it for. This is true for both sellers who are moving and those who are selling as an investment. The big question is what price should you tack on it? You should take into account five factors when deciding how much to sell your home for. Let's look at each one.
Comparative Market Analysis
One of the most important factors to consider is the comparative market analysis (CMA), a report your real estate agent can run to help you decide how to price your home for a fast sale. The CMA is a snapshot of sales in a similar neighborhood in which your home is offered, and it provides insight into how much a buyer might be willing to pay for a home similar to yours. The CMA is a very useful tool for sellers since it gives a good idea of how much you can expect to receive for your home in the current market. You can also research yourself by looking at how much comparable properties sold for on online real estate sites.
The Location of Your Home
Location is one of the biggest factors that will affect the value of your home. Though house prices vary from region to region, they are all affected by your location. Even within the same city, the value of the home will change based on its location. For example, a house located in a neighborhood with easy access to amenities and a good school system will have an advantage over one in a neighborhood next to a busy highway. The best way to look at the effect of location on a home's selling price is to compare homes that are comparable in size and quality but differ in their location.
The Condition of Your Home
The condition of your home plays a major role in determining how much it's worth A property in good condition usually moves faster and commands a higher price than one in bad condition or in need of repairs or upgrades. Does your home have a new roof and a fresh coat of paint? That's an advantage in a buyer's eyes.
Plus, there are factors you might not consider that can influence a buyer. If you're unsure of the condition of your home, do a top-to-bottom home inspection with fresh eyes. Walk around your home and note anything that loos amiss, whether it's a broken window or mold in the bathroom. Use a camera to take pictures of any problems you spot, so you can decide whether you should address the problem before selling. . You can also check for hazards like exposed electrical wiring or leaking pipes that might be a hazard. Hopefully, you've maintained your home over the years and it shows!
Have You Done Any Updates?
Real estate agents recommend putting your best foot forward as soon as your home hits the market. An updated home is likely to attract buyers and sell for a higher price than a house that has a dated interior. An updated kitchen and bathrooms are highly desirable to buyers and can help your home move quickly and at a higher price.
If you can only update one room before putting your house on the market, choose the kitchen. Homes that have a contemporary kitchen sell faster and at a higher price. Other renovations may not count as much or could be detrimental. For example, a swimming pool might sound like an advantage, but some buyers have no interest in one and may even see it as a safety liability and something they have to spend time to maintain.
The Recommendation of Your Realtor®
Consider the advice of your real estate agent too. Your agent will be the one doing the hard work so you don't have to. Agents know how to price your home, and they know how to sell it. So go ahead and let your agent do the pricing for you! They understand the nuances of the housing market in your area and often have an intuitive feel for how much homes will sell for. Plus, they're able to run a comparative market analysis and base their recommendations on what the report shows.
When you hire a real estate agent, you count on them to be your advocate, which means they do the work of selling your home for you. They will market your home, show it to potential buyers, negotiate the selling price, and handle all the paperwork and minor details that come with selling a property. So, choose a competent one with experience.
The Bottom Line
Price your home appropriately and you have a better chance of selling it quickly. Now you know some of the factors to consider when deciding on a price.
"How to Price Your Home to Sell | Zillow." .zillow.com/sellers-guide/how-to-price-home-to-sell/.
"A Guide for Pricing Your Home to Sell | realtor.com®." 02 Jan. 2014, realtor.com/advice/sell/set-the-list-price-of-your-home/.
About Main Line Homes
Janis Peterson, Realtor®, GRI, ABR, SRES, CSP, www.mainlinehomes.com, is an Accredited Buyer Representative (ABR). She specializes in real estate in Montgomery, Delaware, and Chester County, PA, Pennsylvania, and has been offering exceptional service to Philadelphia Main Line Buyers and Sellers since 1994.
If you're thinking of selling your home, give Janis a call at 610-642-3744 or e-mail her at firstname.lastname@example.org, and she will be happy to come out and give you a full Comparative Market Analysis (CMA) of your house at any time.
Janis Peterson, REALTOR®, GRI, ABR, SRES, CSP
Main Line Homes Luxury Real Estate Agent
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