How to Price a House
When you’re planning to sell a house, you want to set a price that will ensure a gain but at the same time make the offer attractive to buyers who want a good value for their money. Of course, you’ll need some help in the form of certified real appraisers and a real estate agent. Ready? Here are some tips on how to price a house.
Hiring a good certified real estate appraiser is the first step in pricing your house. The appraiser will have enough technical and field experience to evaluate the value of your house. What you can expect from the real estate appraiser is for him or her to visit your house, inspect it and give an estimate of your house’s worth. You can expect the appraiser’s cost estimate to be more accurate than the cost of similar homes as unique features and other considerations will be included in naming a price.
Research will take up a bulk of pricing your home. First, research on what neighboring houses have been selling for in more recent months. Your real estate agent can help you with more with that by providing sales data on your neighborhood houses’ prices.
After researching on neighboring houses, move onto researching how neighboring houses within a half mile radius to your house have been selling. Don’t forget to consider that they should all be within the same neighborhood and the size of their lots should not overtake yours by at most, ten percent.
Current market conditions also dictate the price of your house. The current economic recession, for example, was created by the housing bubble that in turn, forced real estate prices to go down. Anyone who wishes to sell their houses in these times should expect to sell their houses at a loss. If you can wait, the best thing to do is wait until the current economic housing bubble improves or dissipates.
If you still insist on selling your house, ask your real estate agent in helping you compile sales data that detail the final selling price of houses similar to your own. Add ten percent if you’re involved in a seller’s market. In a buyer’s market, subtract one or two percent to reflect the market trends.
In a balanced market, price your home at its appraised value, but you should also take inflation into consideration. But again, with the current economic recession, expect your house to be sold at a loss, especially if you need to sell your house quickly.