Avoiding the common myth & determine the correct price range for your home
When pricing your home we will take the approach of a professional appraiser. Although we as real estate agents are not licensed to complete an appraisal we are however able to assess the value of a home through a “comparable market analysis”.
Basically this means that we will determine the potential asking price for your home based on area comparable homes or comps. This is where sellers will make the critical mistake of pricing their home because many homeowners will base what they think their home is worth on what is currently for sale on the market.
Although we will look at these to get an idea of what other homes in the area are listed for, we will never base your home’s asking price on for sale comps only.
Some agents will overprice a home in hopes of getting the listing because they convince the seller that it’s worth the high price; it’s been my experience that this is just pipe dream pricing. Like an appraiser, the only comps that can and should be used are closed sales comps because they show the reality of current market conditions.
Using homes sold within the last six months and within a five mile radius of your home will give you a real bottom line, on what buyers were willing to pay and what sellers were willing to sell for.
Of course we will take other things into consideration like how well maintained and updated your home is and what type of amenities it offers to determine an asking price that takes a valuation approach and not just using comparables.
Avoiding the common myth and determine the correct price range for your home
If you read the section about pricing your home using existing for sale comps then you have part of the answer to determining the correct price range for your home!
We’ll start by taking a look at the available homes for sale but we’ll only do this to get an idea of what these homes are currently listed for and how they compare to yours but we’ll never base the asking price for your home on active comparables; closed sales are the reality of the market.
We’ll compare items like:
Square footage & Lot Size
Location / Views
Miscellaneous features such as a pool, spa, basement and general upgrades to kitchens, baths, etc.
NOTE: Avoid the myth that a new roof, heating / AC and general maintenance repairs add to the potential value of your home; these items do not necessarily add value to your home because generally speaking buyers expect a house with a roof that doesn’t leak and a working heater etc.
Taking this list into consideration and your area market conditions, we’ll apply and compare the differences between your home with the sold comps to determine a price range. Now the rest is really up to you! How you determine the sales price will be based on your time requirements; if time is limited then you should consider pricing the home at the lower range if you have more time to spend on the market then you’ll price it on the higher end but remember that pricing too high may keep the house on the market longer and you may have to reduce the price in increments as the months go by and this may result in your homing appearing “stale” and leaving buyers wondering what could possibly be wrong with it.