Set Your Price
Before you can determine the proper price for your home, you must know what the
house is worth. That doesn't mean what you paid for it or how much you paid to
upgrade it. It means determining just what someone else might be willing pay
for it.
The two biggest considerations in determining worth are understanding current
market conditions and knowing the details of other recent sales in your
neighborhood. Your RE/MAX associate has access to all of this information and
will work with you to provide an objective, impartial analysis of your home;
how it relates to other competing homes on the market, how it reflects current
design and style trends, and how to best market it to prospective buyers. Once
you've determined your home's worth, you and your agent can determine the
proper asking price.
Most often, the price of a home is set slightly higher than its worth, to give
a little "bargaining room." Of course, listing the home at a price too high can
be as bad as one that's too low. If the listing price is too high, you'll miss
some of the buyers who are looking in the price range where your home should
be. It's critical to be aware of where and how fast the market is moving, both
when setting the price and when negotiating an offer. A home with a true value
of $200,000 has certain features that contribute to its value. A house valued
at $150,000 in the same market normally has fewer features. Buyers in the
$200,000 range won't be impressed with the home's features and buyers looking
for homes in its true market value won't visit it because of the higher price
tag.
Factors to consider in pricing your home include:
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Location of home
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Condition of home
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Economic conditions
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Supply and demand in the market
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Seasonal influences
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Local schools
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Average price of homes sold in the neighborhood
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Average price of homes similar to yours on the market
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List prices of homes that did not sell
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Extras such as a pool, fireplace, central air, etc.
If you're in a hurry to sell your home, setting the asking price a little lower
than what your home is worth will attract a lot of attention. But beware: If
the price sounds too good to be true, buyers may be skeptical. They may even
offer less than the asking price anticipating problems with the home down the
road.
You may choose to include appliances or other extras in the sale or offer a
redecorating allowance. You may also be able to offer creative financing.
Consider purchasing a home warranty (covering major appliances and systems) to
make the home even more attractive.
Smart Seller Questions
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