|
|||||||||||
Home Seller's HandbookSetting the Listing Price Its reasonable to want the highest price possible. However, there are many factors that determine the realistic price of your home, including market conditions and interest rates. There are many activities you must carry out before divulging into setting the price for your home. Remember, that this is the most important step in selling your home, since it will either encourage prospective buyers to come to your showing or will discourage them from even taking a small peek. If you price your home too high believing that all the improvements and remodeling projects that you completed warrant the higher price, you will soon become disappointed by the bleak number of individuals wanting to view your home. Prospective buyers will get discouraged and simply believe that your house looks too expensive to even be considered. Keep in mind that although you may have spent considerable amount of money on improvements and remodeling projects, the rule of thumb is that you will not get back a dollar for dollar return on your investment. On the other hand, if you price your home too low, you will short-sell yourself. Sure, you will sell your home in the shortest span of time possible, but you will potentially be losing thousands of dollars. The good news is that if you price too low, you will most likely get multiple buyers and at that point, you can drive the price up as the buyers bid against each other. Creating competition is always a key to a successful sale. Here are some more activities that you must carry out in determining the listing price of your home: Consider Market ConditionsThe housing market is ever-evolving and you need to make sure to stay current, so that you are aware of how long it should realistically take to get your home sold. In a buyer's market, there are many properties on the market at the same time. Buyer's have many choices and therefore, have the upper-hand in negotiations. In a seller's market however, there are very few properties for sale at any one time. Buyer's don't have many choices and therefore, the seller has the advantage. In this case, the buyer's usually have to settle for terms or settle for a house which does not pricesly meet their expectations or needs. Finally, in a balanced market, there are enough homes in the market as there are buyers. Neither buyers nor sellers have a particular advantage over the sale or purchase. If you find yourself in a buyer's market and need to sell your home promptly, offer an attractive bargain price. Conversely, if you find yourself in a seller's market, you can price a bit beyond what you really expect, just to see what the reaction will be. Check the Sales of Comparable HomesNo matter how different your house is from everyone's else's house on the street, buyers will still be comparing it's price with the price of other homes in your neighborhood. The best route for you to follow is to streamline your price range with the price range that buyers have been willing to pay for similar homes in your neighborhood in the past few months. Similar homes are those with the same number of bedrooms, bathrooms, stories, similar square footage, similar condition, lot size, and location. In addition, there are many other factors to consider in setting your listing price, and as always, I am here to provide you with the assistance you need. I will compose a comparative market analysis for you, which will detail the prices of comparable recently sold homes, on-the-market homes, and homes which were on the market but never sold. The comparable sales will produce the most accurate estimate of market value for your home. Check out the CompetitionAlong with the sold and pending comps, analyze similar properties for sale in your area. Attend neighborhood open houses to view comparable homes for sale in your neighborhood. However, keep an objective view and realize that the listing price may be overpriced. Find out how long the house has been on the market. This will be a good indicator to how correctly or incorrectly the Seller has priced his/her home. Estimating Net ProceedsOnce I provide you with an estimate of the market value of your home, I will give you an estimate of how much cash you might walk away with when the sale is completed. This is particulary useful when you start looking for another home. You can also estimate the net proceeds on your own by carrying out the following steps: From the estimated sales price, subtract:
In addition, I can advise you on whether local customs or rules expects you or the buyer to pay for the following items:
As far as closing costs are concerned, most of the time you, the seller will pay for them, however, situations vary, and therefore, you and the buyer will most likely come to an agreement on who will pay for these costs. The next step in the process of selling your home is to draft the seller's listing agreement. |
|||||||||||
|
|||||||||||
