One of the biggest, most important steps to take in selling a home is determining its final selling price. After all, this is the first and oftentimes the biggest deciding factor in a home’s success or failure in the market. Whether you’re selling with a pro realtor or by yourself in FSBO, it is highly important that the house is priced quite accurately not to mention fairly so it has good chances to compete in a highly competitive and fickle market.
But how do you actually determine your home’s price? Here are some tips:
- Use the original price of the house as your base.
The best place to start when pricing your house is to go back and recall the price you bought the house for. This is a good place to start adjusting your house both for improvements, damages and repairs, as well as the age of the house. If you need more tips, click here to view Yahoo Homes’ article on how to determine home prices and home worth. Remember that each year, your house loses a valuable amount on wear and tear, but any improvement will help counter the deductions.
- Take account of all the improvements you’ve made on the house since you took over.
Of course, like the total price of the house, adjust it for the age and wear and tear. Your thousand-dollar kitchen makeover didn’t remain untouched over the last five years, you know. So that slashes a significant amount off of the price of the improvement.
- Check for similar houses within a mile radius.
Go for houses with similar square footage, similar number of bedrooms, and about the same age. This trick is also applicable if you’re hunting for a condominium or an apartment complex to buy. For example, if you are keen on selling your unit at the Ken Bangsar, you must do your research and check other similar condominiums in the Bangsar location so you’d have more information.
- One or two of the aforementioned factors will do.
Check the average price of at least five of these ‘similar’ homes and compare it with yours. If your price is way too far from theirs, then maybe you need to make some adjustments or see what makes yours a little bit too expensive. Remember, you are targeting the same buyers as with these other homes on the listings so you are practically in direct competition with these other homes.
- When pricing your home, take into account the landmarks and accessibility of major thoroughfares in your location.
If your house is, say, within a stone’s throw away from the main street of Disneyland or the biggest mall. Or maybe, your home is at walking distance from the school, or right across the block from the bus stop – these factors all take your home price up (or down). Accessibility not only to major streets but to major spots (business, education, or tourism) raises the demand for your home.
- If you find your house a little too cheap for your taste, make some last minute investments especially in the oft-observed areas (i.e. curb, lawn, walls, floors, ceilings, etc) to help boost your home price.
If you are unsure of how much your home should be sold at, your best option is to hire the services of a professional home appraiser. Who knows, this might even help you save up on closing costs, in the end. Your realtor can only do so much for the price and the final say is always on you – the owner. The safest way to go is always with the help of a pro because their methods are perfectly calculated and accurate.