Pricing a home                                                                                  << Back        

Traditional wisdom says that any house will sell...for the right price. But just what is that price? If you are having a difficult time deciding on the value of your home, try following these 4 steps. And remember, the "right" price may not be the maximum amount you could get. It is the price that gets you out of your home at the time you want!

Step 1: Find Recent Asking Prices

This one's straightforward. Browse the asking prices of homes in your area, and in other areas that are comparable to yours. You can look on your local Realtor listings, check private sale website, and drive around to see what the competition is. Jot down the price as well as important factors like lot size, house size, number of bedroom and bathrooms, and any other special features.

Step 2: Find Recent Sold Prices

It can be trickier to find the sold prices. If you speak with a real estate agent, they can give you some information -- especially if they are doing a market evaluation for you. There are also AVM (Automatic Valuation Model) reports that you can order on-line. These usually give you comparables based on the recent sold prices in your area, and they'll list the properties.

Step 3: Compare Your Home

Use the features of your home and compare it to the recent asking and selling prices of comparable homes. Is your location or view better or worse than some of the others? Do you have 3 bedrooms instead of 4? Go over the pros and cons of your property carefully and you'll probably be able to see what price range is good for your home. Don't forget -- it is more important to consider the SOLD prices. Anyone can ask anything for a home -- that doesn't mean they'll get it!

Step 4: A Matter of Time

This step is totally in your hands. You need to decide how long you have to sell. If you are in a hurry, under-price your home slightly (only 1% or 2%) to attract serious attention fast. If you are willing to wait, price your home at what you think it's maximum price may be. But remember, the longer your home is on the market, the more likely buyers will think that there is something "wrong" with it. It is best to list when you are committed to selling in a reasonable amount of time.

If you are unsure about pricing your home yourself, there are professionals out there to help. You can hire an appraiser for usually a few hundred dollars, which is small change if you are considering selling on your own and not paying commission. Realtors can do a market evaluation (which is not the same thing as an appraisal), which can also give you an excellent idea of price. But don't contact a bunch of agents for market evaluations if you are not interested in their service -- that's just a waste of their time! Do contact them if you may be interested in using an agent or using that particular agent's services. Be up-front about your expectations and what you are looking for -- everyone appreciates honesty!

Remember to look over all the comparables and come up with a reasonable price that you can justify to your buyers. Don't forget -- you can't charge for your memories. So be realistic and you'll find the right price!