Selling a home is a stressful process. You have your work cut out for you, and determining the right asking price is only a small part of the battle. Even though your asking price is merely one component of a much larger picture, it’s one of the most important components.
Too high, and your house will never sell. Too low, and you’re losing the profits you deserve. Your ideal asking price depends on a variety of factors, and you’ll need to consider a variety of factors when determining the final sum.
What’s The Market Like?
One of the most important figures you need to consider when pricing your home is the median asking price of similar homes in your area. Pricing yourself out of the market means you’ll be sitting on your home for a lot longer than you had intended to.
Look beyond the list price, and see how long these homes have been sitting on the market. What did they finally wind up selling for? Your realistic estimate should be based around the actual sale price of these homes.
What’s The Condition of Your Home?
If there are any major defects with your home, you won’t be able to ask as much as you would for a similar home in better condition. If you aren’t interested in doing any of the repair work, you’ll have better luck pricing your home less than the estimated cost of the necessary fixes.
If you’re a little more ambitious and you’re willing to put some elbow grease into the situation, you can do the work yourself (or hire a contractor) to bump your home up to full market value. If the cost of the repairs exceeds the value they will add, it may not be worth it.
Have You Made Any Improvements?
Some improvements yield a staggering return on investment. A new roof can add anywhere between 15 and 40 percent to the value of your home. Kitchen updates are another value booster, with bathrooms coming in as a close second.
If your kitchen and bathrooms are seriously outdated, you’d be shocked to discover how much an update can boost the value of your home. If you aren’t sure where you stand in the area of improvements, you can always have your home appraised.
How Quickly Do You Want to Sell?
If you’re adamant about receiving full market value for your home, the sale may take a little longer. If you have the time to wait, you may find that it’s worth holding out.
Your asking price should fall in line with your desired time-frame. Lower asking prices generally lead to homes selling fast. If you have other obligations or you need to move quickly, you may have to sacrifice how much profit you’ll receive off the sale of your home.
Are You Using a Realtor or an Investor?
Think about the route you want to take. With a realtor, a variety of factors can affect how much you’ll actually receive from the sale of your home. If your home sits on the market for an extended period of time, a real estate agent may advise you to lower your asking price.
Some real estate agents may suggest you make improvements. At the end of the day, the realtor still needs to take his or her commission, and this can knock down your final sum significantly.
Investors rarely give full market price for a home, because they intend to do things their own way. They may want to modify your home, resell it, or rent it out. While you’re not getting your home’s full worth, you’re also not risking the price going down any further.
Most investors pay cash immediately, expediting the sale process. After you consider all the costs involved with choosing a realtor, using an investor can potentially be more profitable.
There’s no right or wrong way to sell your home, and there’s no clear-cut way to determine the perfect asking price. if you’re someone who needs to sell their home fast, there may be some trial and error along the way. Just make sure you’ve thoroughly researched the process before you decide to sell.