We suggest the following recommended guidelines to assist you in determining an accurate sales price. Accurate pricing is the most important task when selling your home either “for sale by owner” OR with a realtor. If your price is not within the market price, your sale will only be prolonged.
If you do not want to determine the fair market price yourself, hire an appraiser. This is the most accurate way of pricing a property. What better sales tool to show a prospective buyer who makes a low offer than a professionally prepared appraisal?
Another option for determining your sales price is to ask 3-4 realtors for their recommendations or a “comparative market analysis”(CMA). The CMA compares properties and prices similar to your property. Within this comparison location, property conditions, finishes, age, etc. are used. Remember that sometimes agents will either under price or overprice your property. If it is overpriced, you will be selling for a long time. If it is under priced, you will be receiving less than you deserve. Compare the realtors’ suggestions and choose a price wisely. Be advised that realtors are not certified appraisers and their experience in pricing homes can differ dramatically. They will usually give you a range of values rather than a specific price. For instance, a $145,000 home can receive market analyses ranging from $140,000 to $155,000. So, be careful if choosing just one market analysis as your determining factor.
If you choose to price your property on your own, we offer the following suggestions:
- Check the prices of “comparable properties” in your area.
- Check advertising to find current market prices for similar properties in your area.
- Checkout properties for sale in your neighborhood similar to yours for comparison.
- What is the size and condition of your property?
- What is the velocity of the market?
- What is the availability and type of financing?
- What is your motivation to sell?
- How long do you have to sell your property? If you have a lot of time, price your property higher, yet if you have to sell quickly, lower the price.
- Be sure you don’t overprice. This could lead to stagnation on the market. (The longer your property is on the market, it will be less attractive and prospective buyers might think there is something wrong with it.)
- Keep in mind the minimum price you are willing to accept.
