Pricing Your Home to Sell
By Elizabeth Dougherty
Every once in a while, someone asks
me about setting the right asking price
for the home they are selling. The truth
is, there are many factors that go into
setting a price that will give you the net
amount you want at closing, while still
being attractive to a potential buyer.
First, marketing time plays into the
asking price. How? The more attractive
the price, the shorter the marketing
time will be. The reason I say "more
attractive" and not "lower" is that
it is not necessarily the lowest price
house that always sells first. The lowest
priced home is sometimes considered
undesirable to consumers. Usually
they are somewhat suspicious of a
comparatively low price. What’s wrong
with that house? Was there a death
in the family or a divorce? The key is
finding a price that is competitive for
what your home has to offer compared
to other homes in the same marketing
area. Find out how long it is taking most
of the homes in your neighborhood to
sell and what the average selling price
was for those properties. Consider your
time frame and you will have a good
idea what you can ask for your home.
Next, think about what makes your
home an attractive buy for consumers.
Why did you buy it? Does it have a big
lot or more square footage than the
other homes in your neighborhood?
If you had your home built, are there
extras in your house that the other
homes don’t have?
Now it’s time to take a frank look at the
condition of your property. Buyers will
look at several things on first glance.
They will notice the condition of the
front of your home. Is it painted? How
well is the lawn maintained? How old is
the roof? When they come inside they
will look up at the ceilings. Make sure
the ceilings are not faded, yellowed or
stained from leaks that (hopefully) you
have fixed. How does the flooring look?
Is your carpet frayed or does it have
stains? Does your tile or wood floor
need refinishing? Above all, make sure
your home is spotlessly clean.
Be realistic. If the other homes in your
neighborhood are selling for under
$300,000 for instance, your home
is most likely not going to sell for
$400,000 (barring Elvis having slept
there or some other very unique fact
about your house). Your Realtor can do
price comparisons using all the different
factors outlined above and give you an
excellent read on where the market is
going and how your home will sell in a
given period of time for the price you
want.
Elizabeth Dougherty, a resident of
Auburn, is a former Real Estate Broker
and Mortage Broker. She can be
reached at EADougherty1@aol.com.
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