Pricing Your Home Can Be Difficult
The biggest point to remember when pricing your home is that its fair market value is not determined what you think your home is worth. Instead, it’s determined by ascertaining what a buyer is willing to pay for your home. This value is typically determined by the sales prices of comparable homes.
When preparing to sell your house, you need to think about your house in the same way that a buyer would. This means that you must distance yourself from your emotional attachment to your house. Although you may have many memories and emotions tied up with your house, you must remember that selling your house is a business transaction.
Keeping these thoughts in mind helps you make sure that your house is competitively priced. It does not matter how great your house is, no amount of marketing or advertising can overcome a price that is too high for the current market.
The fair market value of your house is based upon current market conditions. Because the real estate market continually changes, and market fluctuations affect property values, it’s imperative to select your listing price based on the most recent comparable sales in your neighborhood. One of the biggest mistakes you can make in today’s market is pricing your home at price points of one, two or three years ago. The national median home price dropped more than 15% from April 2007 to April 2008.
Some factors, such as how quickly you need to sell your home and the condition of your home can alter the market price of your home. Being open and honest about your home’s greatest strengths and biggest weaknesses will help you get a better feel for how to best evaluate and market your home.
Karen