Do some homework to determine
a fair asking price for your
house
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Top Selling Tips Articles:
Tips for selling your house yourself
For Sale By Owner (FSBO) may be an option if you completely understand the selling process and the preparation necessary to sell a house successfully. Some people try the FSBO initially just to see if they can sell it themselves. Most of the time that decision will change.
Setting a fair price
Over-pricing your house is one of the biggest mistakes homeowners make. Real estate is a highly competitive business and knowing how to price your product for top-dollar AND a fast sale is critical. Learn the tips professionals use to establish a fair price for a fast sale.
Comparable sales figures
Comparable sales are recent sales of similar properties in the nearby neighborhood or in a similar neighborhoods with similar prices. In short, they are "comparable" to the house you are buying or selling.
If you're a buyer and preparing an offer, your selling agent will probably show you some comparable sales so you can come up with your offer price. Whether you are a buyer or seller, you'll have to make adjustments based on the property and any recent changes in the market.
REMEMBER:
Agents provide advice, but buyers and sellers make the final decisions.
How are comparable homes selected?
Comparable houses are selected from among the houses that have sold in the past year and are within 1/4 to 1/2 mile of the subject house (these two criteria are expanded until a sufficient number of comparables are identified). In every neighborhood there are often distinct unmarked dividing lines that have significant impact on house prices.
Among all houses meeting the initial criteria, the comparable houses are sorted by their similarity to the subject house on the basis of a number of attributes such as the distance from the subject house, sale date, number of bedrooms, number of bathrooms, the year the house was built, square footage of the house, and size of the lot.
When looking at the comparables compare final sales price to asking price and the days on the market.
In a buyers market, you will probably want to price your property slightly below the average final sales price for houses of similar size, location, etc.
In a seller's market, you can expect to ask about 10% more to the average final sales price for houses of similar size, location, etc.
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Determining a fair price
Arriving at the right price is part research and part guesswork
There are 2 important factors to consider when selling your house that will determine the success or failure in selling your property. Those factors are: price and condition of the property. These two factors must be in balance with each other and they operate inside within your local economic conditions.
Real estate pricing is always in a state of change. Prices go up and down from community to community. In real estate, communities are tightly connected with their business community. That is, if businesses are doing well, then housing prices will usually be good. If business is real good, then housing prices may be even higher because of the increased demand and limited supply. If businesses are hurting (cutbacks, layoffs, closings), especially large industries, then selling prices will be hurting as well. People are leaving the community. There is an abundance of housing units with fewer buyers. This drives prices down.
This is a micro view of the real estate market. The larger picture is: how is the economic outlook for the state, country, and finally, for the world? These all relate to how much you can get for your property.
It's important to price your house according to current market conditions. Because the real estate market is continually changing, and market fluctuations have an effect on property values, it's imperative to select your list price based on the most recent comparable sales in your neighborhood.
A comparative market analysis provides background data to base your asking price. When you prepare to sell and are interviewing agents, study each agent's comparable sales report (the data should be no more than three months old).
If all agents agree on a price range for your home, go with the consensus. Watch out for an agent whose opinion of value is considerably higher than the others.