The price you charge for your home when you sell it depends on a number of factors. You probably have a number in mind, but whether that number matches what the market will bear is something you’ll have to carefully consider. The house prices in any given area can vary from one year to the next, and it’s important to make sure you time your sale in a way that will bring you what you need out of your home, if at all possible. Of course, you also don’t want to give your property away, and if you price things too low or misread the market, your buyers could get the deal of a lifetime, while you lose out on a significant amount of profit.
Understand Your Home’s True Value
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Knowing what your home is worth is very important. What you paid when you purchased it may not be accurate anymore. If you’ve made upgrades, that can also affect the value. Of course, there’s also the market value of the other homes in the area, as these will be compared to yours when trying to come up with a selling price. Even if you want to make a quick sale, you don’t want to give your property away. By being sure of the actual value your home has, you can price it fairly to get it sold, without just handing it over to someone for a really low price.
If you’re still unsure of what your home should sell for, you can pay for an independent appraisal before you put your home on the market. That will give you the proper appraised value of your house, so you can price it accordingly. Having the appraisal is also valuable when you have potential buyers, because you know approximately what they can borrow against the value of your home. That will keep you from asking too much, which could mean that you end up going under contract and then not being able to get the deal closed because the price was too high. The right price is important from the start.
What is the Market Predicted to Do?
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Knowing your current market value matters, but also consider what the market is predicted to do in the immediate future. Are interest rates going up? Is there a big, new, planned development for your neighborhood? Anything that you can find out about the housing market, especially in your local area, is going to be significant when it comes to the price you put on your house. The more you stay up to date with current trends, the easier it will be for you to decide if you want to hold off on putting your house up for sale, because you expect a significant change in the market in the coming months.
It’s Not Just the Market That Matters
The market isn’t the only concern when trying to make sure you price your house fairly. What’s taking place in your community can also matter. For example, if the interstate is being expanded next year and the state will be buying up property in your area, you may not want to sell. You could be offered significantly more for your property because it’s needed for something else. If you sell now, your buyer will reap those benefits. Doing research into your community and staying up to date with changes that are taking place in and around it can help you decide whether to sell now or wait, and what to price your property at to avoid losing big.
What if You Need to Sell Now?
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Sometimes, it’s not about waiting until the market is better or hedging your bets on significant, upcoming changes. Instead, it may be about the need to sell your home fast. Still, don’t give your home away just to get it sold. You need to make sure you get a fair price from it. The other option if you have to move quickly is to rent it out, so you have some income from it while you’re trying to sell it. Leasing it with the option for the renters to buy it at a later date can also work, but there is risk involved in any of that. If you must sell, and have to do so as quickly as possible, price the home at the low end of what you’ll accept and market it aggressively. Your buyers will get a good deal, but you will still receive a fair price.
Don’t Get Taken In By Inspection Complaints
To avoid giving your buyers the deal of a lifetime, don’t get taken in by trying to fix everything that the inspection finds. There’s always something, and the buyers may threaten to walk away if you don’t fix things. While you want to be flexible with what you’ll offer, know your limits and stick to them. You don’t want to end up putting so much money into your home to make repairs that you don’t get anything from the sale.
Negotiation is the Key
As a seller, you have to be willing to negotiate. You want to sell the property, and your buyers want to make it their own. That’s great news, because you both want the same end result. Now you just have to work through the details. Be willing to do that, but firm in your resolve not to just give the buyers everything they want just to sell the property. If you can’t reach an agreement, there will be other buyers in the future. It’s often better to let a deal fall through instead of giving buyers an unbelievable deal that won’t provide you with any value.
