by Bonny Styles
Being able to price your home accordingly is crucial when it comes selling it. Buyers know what they are looking for and they know what prices to expect. As a seller, you should be ready with a fixed asking price and reserve price. In real estate, the asking price is the most important price factor you need to consider.
The reserve price is basically the lowest price that you would be willing to sell the home for. Now, how do you price a home to sell? There are many factors you need to take into consideration, so will take you through the steps below.
Always get advice from a real estate agent about the determining the selling price for your home. However, even before you consider talking to your broker, you should do some research on your own to get some knowledge of the current real estate market.
Whether you live in a well-populated city or a small town, you wouldn’t always be the only one selling a home in the area. Especially with the current boom in the real estate market, you will find several other properties for sale in the same community. As a basis of price determination, look around at the properties for sale in your area.
It can be properties right on your street or two blocks down, but as long as you are in the same region. Some homes are larger than others and some may be smaller than others, so take all this into consideration. By looking at three or four properties, you would get an idea of where the market sits in terms of average value.
Talk to an experienced real estate broker and let them know that you are going to be selling your home. The agent would then gather up all the information about your property and identify a well thought-out asking price. You would need to confirm on this price before it is listed in public. The research you did before would give you an idea of whether the price quoted by the agent seems reasonable.
Something’s to take into account for the sale are the current market value of the home, the value of recently done renovations, fair value for the community and added equity. If you have done some notable renovations to the home, you could surely take that into consideration when you are pricing your home.
Small renovations like fixing cabinets or painting a room would not necessarily have a huge impact. Renovations such as roof replacements or new windows and doors would be considered as notable costs.
In many cases, you would be able to make some money from the sale ofthe home, but it is not always guaranteed. In order to have people fixated on the asking price as opposed to a reserve price, you should have a solid property that anyone would buy in a blink of an eye.
However, the asking price is always set higher than the price you really want to sell for, as it gives some room for negotiations. A well-priced property will sell out quicker than an overvalued property.