How to Price a HOME
Real Estate Corner…
Q. We are getting ready to sell our home, but we don’t fully understand how the asking price is determined. Can you help us figure out how much our home is worth?
A. There are a number of ways to determine your home’s value. The first item
is to disregard your view of your home’s worth and start considering what it is worth to a prospective buyer. Chances are you have invested a lot of time and money into fixing up your house to be the perfect home. A buyer doesn’t share your memories or care about your financial situation. A buyer cares about the value of the home in his or her life.
The second item to consider is the comparative market analysis (CMA). This tool allows you to see what other similar homes have sold for in your area. Be sure to ask why certain homes were included on the CMA while others were not. The CMA is often a good tool to use to determine your beginning asking price. Consider going to open houses in your area to learn how other homes compare to yours. Remember to look at other homes with the impartial eye of a buyer, not from the view of a current homeowner looking to sell. Using the price per square foot formula is a good way to compare your home to others. This should not be the only determinant, but it can be helpful in setting a fair asking price.
The final item used to determine an accurate asking price is to consider add-on options. You may consider offering a lease-to-buy incentive, a quick closing date, or to assist in buyer financing. These added benefits could help you get a great price and help the buyer choose your home over another house. If you are thinking of selling or buying soon, and require competent and caring representation, please call me at 519-824-9050 xt 265.