Pricing your Property to Sell

The property price dilemma

Homeowners are often faced with a dilemma of setting a price for their property when selling their home. If you ask for too much you risk your property being in the market for too long without attracting any offers. You may lose out financially if you set the price too low. This is why homeowners sometimes set price of their property very high and may negotiate the selling terms later if the property does not sell. However, this may affect value for your home.

The most important part of selling your home is setting the correct price. You may sell your home FSBO or through a real estate agent. Both ways it is important to set the right price. The main aim is to sell your home in a reasonable amount of time.

Buyers are well researched about the real estate market.

Buyers are very much aware of the current real estate market conditions. When a property is overpriced it won’t sell. When a property has been in the market for too long it becomes old and buyers assume that there must be something wrong with it. Sometimes sellers overprice the home and lower the price of it later just to test the market. However, the buyers still think it to be overpriced and tend to negotiate the sale. Properties that are listed with real estate agents are vulnerable as many agents give homeowners an overstated value of their property to try and keep the listing secure. Later the agent convinces the owner to accept an offer that is often lower than the actual value of the property.

Factors that affect the price of your home.

The sale price of your home is affected by the amount of time it spends in the market. When you need to sell your property quickly and the real estate market is moving slow you may have to settle for a sale at a lower price in order to sell your home. With this the number of prospective buyers increases as the property becomes more attractive to investors who may want to rent it out or offer it for sale at a higher price. When you are not in a hurry to sell your property you can focus more on attracting homeowners than investors. Homeowners are not that concerned about earning rent as revenue or high profit. They are often willing to pay more for a home they like.

Some other factors that affect the price are:

Location: Location is another important factor to be considered, which affects the price of your property. If it is located in an area that is up coming and is high in demand, it will fetch a higher price than the same home located in a less desired area.

Condition: A well maintained and can be moved into easily. The new owners don’t have to make any necessary adjustments. This will also fetch a better price and the sale will be made easier.
Facilities: If your house offers various amenities such as parks, schools close by, a club house; it will fetch a high price.

FSBO and property prices: As an FSBO homeowner you are in an incredible position to cut competition (properties listed with real estate agents) and can earn more of the equity as you have no real estate agent’s commission to pay. Many number of FSBO owners erode their competitive advantage by asking the same or more than properties listed with an agent.
Buyers have different opinions on whether to buy through an agent or directly from the owner. Sometimes buyers prefer to negotiate through an agent. They may be more honest with their feedback; therefore these buyers need a reduced price to attract them if they to consider FSBO properties. Many other buyers prefer to deal directly with owners. Buyers are aware that the homeowner is saving a certain amount since no commission is being paid and will expect the owner to offer some of the saving with them.

Determining the price of your property

To determine the price of your property it is necessary to be aware of the estimated price of similar properties in the neighborhood. This can be done in several ways:

1. Online valuation service
Online valuation services collect reports on historic sales data for a particular area. This is useful and provides information without any difficulty.

2.Professional appraisers
The most accurate way to find out how much your property is worth is through professional valuation. This is different from valuation that is availed from a real estate agent. Professional appraisers are legally responsible for their valuation. They have no financial interest in the property. Banks need a valuation from a professional appraiser to issue a mortgage. The appraiser will visit the property and assess the condition in order to value your home. Then they will compare it to other properties in the area.

3. Market analysis
A market analysis can be conducted by comparing similar properties in a particular locality. This means comparing the selling price of properties and not the asking price. Look for a few homes similar to yours sold in your area over the last few months. Enquire from agents or owners in order to find out about the properties listed. Since no two homes are similar to each other it is essential to make changes for differences between your home and the rest.