Home Selling Tips

Pricing Your Home to Sell

Getting Market Value or More For Your Home

When you're selling your house, setting the right price is super important. If you ask for too much, people might lose interest after the first few weeks. After about 21 days, fewer people will want it. You can always drop your price later, but it might not help much by then. On the flip side, don't stress about setting the price too low. If it's under what others are paying for similar houses, you might get several offers that push the price up. It's all about what people are willing and able to pay. To nail that sweet spot price, you should check out what similar houses are selling for, which is called a comparative market analysis (CMA)

What distinguishes list prices from sales prices?

When you see a house for sale, the price you see is just what the seller wants to get for it. That's the list price. But the real price it sells for could be different. Sometimes it's the same as the list price, sometimes more, and sometimes less. It all depends on the market and how well the seller sets the price to start with. If nobody makes an offer after a few months, the seller might have to drop the price to attract buyers.

What are the two most crucial elements in home sales?

When you're trying to sell your house, especially if the market isn't great, there are two main things to think about: the price and the condition of your home. First, let's talk price. You want to set a price that's just right - not too high, not too low. You can ask your real estate agent to help you figure this out with their sale price info, or you can get a professional apprasier to assess your house's worth, which usually costs around $400 to $600.

Now, let's talk about your house's condition. Take a good look around and fix anything that's obviously broken or looks bad. This will help make a good impression on people who come to see your house. If the market is slow, you might need to lower your price a bit or fix something big, like the roof, to make your house more appealing.

Lastly, you want to make sure people know your house is for sale. This means having open houses, putting up signs, advertising, and listing your house online and with local real estate services. If you feel like your house isn't getting enough attention, talk to your agent or their boss. If things still aren't working out, it might be time to find a new agent.

When is the ideal time to sell?

You know, the housing market really starts to get busy around February. That's because a lot of people want to move in spring or summer, especially families with kids. They like to buy a new place and move during summer break, so they're all settled before the new school year begins. Things usually slow down a bit later in the summer, then pick up again for a short while in the fall. Even though November and December are usually pretty quiet, you still find some smart buyers out there looking for good deals.

What distinguishes the market value from the appraised value?

When you want to know how much your house is worth, there are a couple of ways to find out. First, you can get an appraisal. This is where a professional checks out your house and tells you its value at that moment. It usually costs between $400 and $600. The other way is to ask a real estate agent to do a comparative market analysis. They'll look at what similar houses have sold for and give you a rough idea of your home's value. Both of these methods are good for figuring out what your house might sell for.

What distinguishes the list price from the sales price and the appraised value?

Alright, so the list price is like the sticker price on a car - it's just what the seller wants for their house. It could be high, low, or just right. To figure out if it's a good deal, look at what other similar houses in the area sold for. Now, the sales price is what you actually end up paying for the house. And then there's the appraisal value, which is like a professional guess of how much the house is worth. It's based on a bunch of stuff, like how the house looks, what other houses are selling for, and more.

How does one market a slow mover?

When selling a house, especially when the market isn't great, the two key things to think about are the price and the condition of your home. If it's a slow market and you need to sell, you might have to lower your asking price. Also, take a good look around your house for any small repairs or touch-ups that could make it more appealing.

Next, you want to make sure people know your house is for sale. This means hosting open houses, getting the word out through ads, putting up eye-catching signs, and listing your house on the local Multiple Listing Service (MLS) and online.

If none of this works, you could take your house off the market and wait for things to get better. Or, if you're in a tough spot like a divorce or financial issues and you don't have much equity in your home, you might consider talking to your lender about a short sale or a deed-in-lieu-of-foreclosure. A short sale is when you sell your house for less than what you owe on your mortgage and negotiate with the lender to cover the difference. A deed-in-lieu-of-foreclosure is when you give the house back to the lender without going through the foreclosure process. These are big steps, though.

Most of the time, the simplest and often best choice is just to lower your asking price.

How is the price set?

Setting the right price for your house is super important in today's market. You gotta look at recent sales nearby to figure out a good price since the housing market's always shifting and can affect your home's value. Before you put your house up for sale, get a thing called a comparative market analysis. This helps you understand the price better. When you're talking to different agents about selling, check out their reports on similar sales - make sure the info is fresh, like no more than three months old. If all the agents agree on a price range for your place, that's a good sign. But watch out for any agent who says your house is worth way more than the others do.

What methods are usually used to determine the value of a house?

When you want to know how much a house is worth, there are two main ways to find out: getting an appraisal and doing a comparative market analysis. Your real estate agent can help with a comparative market analysis. It's a basic estimate of the house's value based on prices of similar houses nearby – both those for sale now and those that have already been sold. You can also look into this yourself by checking recent sales in public records. Make sure you compare houses that are similar in size, style, and location. You can find this information at your local assessor's or recorder's office, or even online through different companies.

An appraisal is a more formal way to find out a house's value. The typical cost is between $400 and $600, and a professional appraiser performs it. The appraiser looks at a lot of things, like recent sales of similar houses, the location, how big the house is, and how well it's built.

How should a house be prepared for sale?

Alright, let's make this easy to understand and straight to the point. If you're trying to sell your house fast and at a good price, here's what you can do without spending too much:

Clean up your front yard: Sweep the path, rake leaves, trim bushes, pull weeds, and cut the grass.

Make your windows sparkle, inside and out. Check if the paint is flaking off anywhere. If your house was built before 1978, you might need to check for lead paint because buyers can ask about it. Fix any issues you find.

Make sure your doorbell is working.

Give everything a good clean: furniture, floors, walls, and ceilings. Pay extra attention to your kitchen and bathroom.

Tidy up your closets.

Check that all basic things like lights and taps are working. Fix any loose wires or dripping taps.

Make your house smell great. Maybe bake some cookies or a pie, or cook something yummy. Keep pet smells under control.

Put fresh flowers around your house.

Play some soft, relaxing music in the background.

Where can I find statistics about the housing market?

If you want to know what's going on with houses for sale around here, just ask a local real estate agent. They usually know what's up. Also, the folks who keep an eye on house sales in our state put together reports about it. You can find these reports at the U.S. Housing Markets. They send out updates every three months about new houses being built and people buying homes. Sometimes, these reports are given to the group that represents home builders in your area. If you can't find the report there, the company that makes these reports is in Canton, Michigan. You can call them at (800) 755-6269, or check out their website for more info.

Another place you can call is the U.S. Bureau of the Census in Washington, D.C. Their number is (301) 763-2422. They have a website too. If you're curious about who's buying homes in America, there's a brochure by Chicago Title. You can write to them at 171 North Clark Street, Chicago, IL 60601-3294. They're part of the Chicago Title and Trust Family of Title Insurers.

Is it wise to entertain a modest offer?

When the market favors buyers, someone eager to sell their home is more likely to say yes to a lower offer. This is different from a normal market where they might say no to the same offer. Here are some key points to remember:

Offers at full price or more are usually better received by the seller.

Think about other things that might affect the offer:

Is the offer dependent on selling the buyer's current house? If so, even a full-price offer might not look as good as one without this condition.

Is the buyer asking the seller to fix things or lower the price, or are they okay with buying the house as it is?

Has the buyer offered to pay all in cash, without needing a loan? Sellers might prefer a slightly lower cash offer over a higher one that depends on getting a loan.