First Things First: How do you set a good asking price?
Put yourself in the buyer's shoes!
Our first priority is to help you set a realistic price on your home. But like most of us who have invested untold hours of time and energy into our homes, it may be difficult to remain objective when it's time to price it and put it up for resale. There's a good reason for this. Usually, homeowners have much more than dollars and cents tied up in a home an individual commitment that makes it a highly valued personal statement. But value becomes a reflection of the buyer's perspective when that house it put up for sale, and pride of ownership may not translate to market value.
Put yourself in the buyer's shoes when setting your price. When househunting, you will shop the market, compare available homes, and try to find the very best value. Consequently, when you are ready to list your home, step back and sharpen your focus. Look at the home objectively and price it competitively.
Listing a house at 5% above current market value gives it a sales advantage that is ten times greater than if priced at 15-20% above. That's a statistic that can't be overlooked. An overpriced home will suffer from lack of exposure, and the longer it remains on the market the more difficult it will be to sell. And it will remain so, even after price reductions are taken to attract buyers.
That is why it is very important to determine an accurate and objective market value for your property. At RE/MAX Playa we'll work with you closely to achieve that, and to maximize your opportunities to sell your home at the best possible price within acceptable time frames.
How does an appraisal work?
In estimating value, appraisers and potential buyers will consider the condition of your home. Of course, a well-maintained home will have greater buyer appeal. You might want to complete any maintenance projects before initiating the appraisal process.
With that in mind, start the appraisal process as quickly as possible: it will enable you to price your home realistically in relation to the market. Plus, your bargaining position can be enhanced with a guaranteed NRS appraisal, giving you leverage with potential buyers.
Appraisers use certain criteria to evaluate the property value. Here are just a few of the items they may use:
- Local taxes
- Size of lot, topography and landscape, easements
- Deed Is the title clear? Is there anything that would limit use or resale opportunities?
- List of improvements, especially to kitchen and bathrooms Do you have permits, if required, for the alterations?
- Age of neighborhood
How appraisers estimate value
Here are some of the general categories that an appraiser will consider when appraising the value of your home:
- Supply and demand
- Economic conditions
- Financing conditions
- Political factors
- View from the outside
- The inside of your home
The appraiser will also compare your home with others like it in terms of current listings and recent sales.
The 7 Deadliest Mistakes You Can Make
When Selling Your Home
- Pricing your home incorrectly
- Failing to prepare your home for the buyer's eye
- "Hard selling" during showings
- Mistaking lookers for buyers
- Not knowing your rights and obligations
- Signing a listing contract with no way out
- Limiting the marketing and exposure of your property