When it is time to sell your home, one of the biggest decisions you need to make is about your asking price. The asking price is the number you are going to use in all your marketing material and in all your communication with potential buyers. It is probably the most important number in the whole home selling process.
So let’s discuss why this happens… The first thing to remember is that the typical home buyer is going to see anywhere between 10 to 20 homes before he decides to make an offer. Very few buyers will walk into a house, fall in love, and decide to buy it without seeing other houses in the neighborhood. And also remember that most home buyers will work with a real estate agent who will advise their clients whether a particular home is overpriced or not.
This includes your neighbors and the houses located within less than a mile from you. Those are the houses potential buyers will likely see when they are looking to buy in your area. Potential buyers will compare your home to those houses in your local real estate market and make a decision whether your home is fairly priced or not.
In the end of the day, the owner of that overpriced house is really helping all the other owners sell their homes faster and for more money.
How much other similar houses sold for in your neighborhood. Make sure you focus on recent sales (within the past 3 to 6 months), not old sales. If most similar homes sold between $230k and $250k, you will probably have a hard time getting $270k for your home.
How comfortable are you with the paperwork required to close a real estate transaction in your state? Most states have standard forms and contracts that were created by the local Association of REALTORS. Those are the standard documents that are used in the vast majority of real estate transactions in your state. If you decide to sell your home yourself, you should get a copy of those documents and familiarize yourself with them. They are not rocket science, but you should have a good comprehension of their content. An option may be to spend an hour or so with a REALTOR or a Real Estate attorney to review those documents and ask questions.
How many similar houses are in pending status and what are their asking prices. Houses in pending status are houses that have an accepted offer but hasn’t sold yet. Typically the buyer is doing his due diligence and inspections and waiting for his lender’s final approval of the transaction. A review of the pending sales will give you an idea of what prices are generating successful offers right now. Your goal is to put your house in the list of pending transactions within a couple of weeks of listing it.
And to close, please don’t forget that pricing your home is NOT a one-time event. You need to monitor your local real estate market very closely and track what your competition is doing. Don’t be afraid to adjust your asking price often to align it with your local market.
Paul Amos is an Author His latest website is about seeking equity loans Refinance service? Refinancing premier Mortgage broker helping people
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