If you're a home owner considering a change, this article is for you.
You may have heard buzz words around the Real Estate industry like “Seller’s Market,” “Low Inventory,” and “Low Interest Rates.” As a homeowner, you may be thinking – easy day! Selling my home will be no problem with these ideal market conditions!
You’re right – the odds are ever in your favor. So, how do you price it? Here are some factors to consider:
Compare your property to SOLD properties
The first mistake homeowners make is not comparing their home to houses that have sold in their area. This is a vital step – you need to know the actual behavior of the market, not just a projection.
Switch your search from “active” to “sold.” Find homes located within 1 mile or less and in your subdivision (if you’re in one). Next, search homes that are similar to yours: same number of bedrooms and bathrooms, +/-200sqft, similar design/layout, lot, etc.
Take a look at your neighborhood – is the builder still building new homes? Is it a desired neighborhood close to shopping and nightlife? How long do homes stay on the market? When was the last time a house sold in your neighborhood? Answers to these questions will determine your home's value and consequentially, how much you should list it for.
Assess the Age
Once you wow buyers with your beautiful home, the next layer gets peeled back. Houses come with several features with a life expectancy. Needless to say, the newer the better:
- Roof: 20-30 years
- HVAC: 15-25 years
- Appliances: 10 years
- Electrical: Lifetime, Electrical accessories (10 years)
- Floors: Carpet (8years), Linoleum (10years), Vinyl (50years)
- Foundation: Lifetime, Termite Proofing (10years)
Could your House be on HGTV?
It’s cliché – but that’s where your customers are shopping – if you can bridge the gap or at least narrow it, you’ll have a better chance of selling.
Today’s customers are paying top dollar per square foot – so it’s no wonder they want the space to be put to a functional, multi-purpose, use. Does your floor plan and interior design match today's trends? If not, you may want to consider that when pricing your house to sell.
Consider the Appraisal
The purpose of the appraisal process is to help keep the real estate market from artificially inflating. Financial institutions require an appraisal so they can ensure their investment is a good one. An appraiser considers many factors like lot size, a view, garage spaces, fireplace, pool, enough bathrooms, and more.
The appraisal can come back to haunt you...even if you have a buyer ready and willing to pay a certain amount, if the appraisal comes back lower, some further negotiations may need to occur.
After all is said and done, your goal should be to sell your house in 30 days or less. Anything can sell if it’s priced right. Can you take a step back and price your house in an un-biased way?
- BONUS MATERIAL -
Proceed only if you're serious about selling!
Tips - Now that you've listed
- Declutter, get rid of as much as possible and consider a storage unit
- Curb Appeal – Green Lawns are happy lawns, trim the hedges, clean around your front door, power wash
- Hire professional cleaners, consider air fresheners around the house
- Hire a professional Photographer
- Marketing – Beyond a sign in your lawn, Open Houses, Internet Advertisements, Presence on Home Search engines