How to Place a Price on your Home for Selling
You’ve decided, for reasons that are either urgent or important, to sell your house. You’ve lived in this house for quite a while, and it has remained in decent condition. If it’s your first time being a seller in the real estate industry, or just unsure, you might not know how much your house is worth in the market.
So, how do you place a price for a home you’re selling? The following are tips on how you could accurately price your house to be sold.
Compare Your Home to Other Similar Ones
Comparing is something you could opt for. This is the process of looking for similar homes in the neighborhood on sale or were recently sold. By “similar,” it means the age, structure, and overall quality of the home. Comparisons are made to provide a reasonable estimation of the house.
Essentially, what you should do is to go around your community to look for a similar house. It has to be from the same area as yours because the homes’ value in one community may differ from another’s houses.
There are different factors to observe which makes a specific house similar to yours: the dimensions (in square foot measurement) of the inside and outside of your home, the number of rooms, especially the bedrooms and bathrooms, the year it was built, the condition of the building and its amenities, and the surroundings of the house.
If you are looking at how to sell your house in Salt Lake City specifically, you could also factor in the location of your home within the city. Homes in certain neighborhoods may be more desirable and therefore demand a higher price.
The house doesn’t have to be in the same situation as yours entirely. You can make adjustments to some differences where you can try to add or subtract the potential value, such as renovations to a specific area or additional amenities to the property like fountains or pools. Make an estimate based on the similarities, and make adjustments to some discrepancies.
Contact an Appraiser
If you do not want to go all through that manual effort, you could hire somebody else to do the estimation for you. It is an appraiser’s job to evaluate the value of a particular property. They are often contacted in situations like property or compensation damage and help buyers and sellers who want to place a value on their property. Thus, you can read this article https://sundae.com/blog/how-to-calculate-net-proceeds-from-a-home-sale to give you more information on how to calculate the value of your house and the assessments they make on the property include value, initial costs, and discounted value.
The main advantage of having an appraiser is that all the hard work will be lifted off your responsibilities, making it less time consuming on your part. All you have to do is wait until the appraiser has an answer for you or add additional insight into your home. This is a good option, especially if you are busy and have extra money to spare.
Ask for a Comparative Market Analysis
Another easy option you could do is to ask a real estate agent or a broker for comparative market analysis or a CMA. A CMA is an evaluation by an agent on your home’s value based on the existing houses sold in the market. An agent is not and does not do the job of an appraiser, but they have experience in the market and are familiar with house values.
This is a good option if you plan on hiring a real estate agent to represent you in selling the house. If you are recruiting someone, you could ask them to give you a CMA to help you with the pricing. At that point, you will be working alongside them, compensating them with a portion of the price as the fee. Asking for a CMA will most likely result in agents wanting to help sell your house.
Make use of Automated Valuation Models (AVM)
Automated Valuation Model, or AVM, is a service that uses mathematical and statistical evaluations to help determine the value of the property. It takes up information from central databases, giving comparisons to similar homes listed in their data. This is a good option if you do not have the time to do it. It is less time consuming and has a more reliable estimation than doing it yourself.
But what makes AVMs different from appraisers? The main difference is that unlike appraisers that are available to communicate with you, AVM’s are software. People can access these AVM’s through the internet in the form of a site, a program, or an online application.
It takes a few minutes to register and use the software to your liking. These are mostly free and are accessible with only a few clicks. AVMs are quicker, more convenient, and, unlike hiring someone to do an appraisal for you, free.
Thoroughly research for AVMs online, select a site, make sure that it’s legitimate and do whatever is required to have access to their service.
Takeaway
One of the most important things to make sure when you’re selling your house is that the price you sell it for is fair and justified. It’s your choice whether you want to do all the research or seek professional help to assist in your endeavors. As long as you put up a fair price, being an honest seller is a piece of cake.
