The asking price, also called the market value, is the number one factor in the sale of your home. Before setting an asking price, your realtor will complete a Home Market Analysis. This process allows you to review and evaluate the facts and helps to establish a realistic listing price. It also helps to increase the percentage of qualified buyers who look at your property as well as allowing you to look at your home from the buyer’s perspective. Some points to consider while setting a realistic market value for your home include:
v Do not base the asking price solely on what you paid for the home. You could be asking too much or too little.
v Determine how much time you have to sell your home. If you must sell quickly, your realtor may suggest a more competitive price or more favorable terms.
v Your realtor will provide you with a list of recently sold comparable homes in your area, as well as a list of homes currently on the market and in your price range that will be your competition.
v If the house is under priced, it may sell quickly – but, not to the benefit of your net profit.
v Pricing your home too high will only make your competition look better. You will lose a large majority of eligible buyers who may not even look at your home because it is out of their price range.
v If you ask a realistic price, you are more apt to draw attention from more than one buyer. This situation usually favors the seller because some competitive buyers will be more willing to bid up the price of the property.
v Although the average price per sq. foot for homes in your neighborhood should not be the only element that goes into your asking price, it is a useful starting point.
v Some factors that influence the price of a home include: Location, condition, and amenities. If your home is located in a desirable area, if it is better maintained, and if its amenities are currently popular in the marketplace, the house will ultimately sell for more.
v The actual market value is based upon what the buyer is willing to pay. Your realtor will be there to counsel you on what you can do to maximize the value of your home, making it even more appealing to buyers.