One of the biggest issues in today’s real estate market is how to set the price of your home when it comes time to sell. During the boom, you could ask for the sky, and chances are that bidding wars would bring you the moon as well. Today, that isn’t the case. Here are some tips to help you set the price of your home before you put it on the market.
First let’s talk about the real estate agent or broker. Contact at least three different agents and ask them to do a market analysis on the price of your home. The agents should take the prices of homes in your area that have recently sold and the price of homes that are still on the market. Good agents will compare apples to apples, taking into consideration the features of your home and how they compare in the neighborhood. They will also take a look at how many similar homes are on the market in your area, as well as how soon or desperate you are to sell.
Have your three agents come in and give you the price that they would use to list the home. The prices given should all be in the same range, but there will be some differences. Sometimes agents quote you a price that is higher than the market will support, in order to get your business. People tend to go with the agent who puts the most value on their home. This could be a big mistake. Ask the agents how they got to their numbers and ask to see the “comps,” comparable homes in the area.
Next take a look at the inventory, or the number of homes in your area. If there is not much competition, then go ahead and price your home for the same prices that the comps are asking. If, however, there is a flood of similar homes, then set your asking price 10 percent below the others. This will generate buzz, and it raises your odds of getting multiple offers.
Mary Ann Romans writes about everything related to saving money in the Frugal Blog, technology in the Computing Blog, and creating a home in the Home Blog. You can read more of her articles by clicking here.
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