It's time to sell your home. The home where you spent hours scrutinizing paint colors for the kitchen. The home where you planted those two oak trees fifteen years ago. The home where your youngest broke a tile in the hall bathroom, forcing a minor remodel.
Many home sellers inflate the value of their home, not just because of sentimental value, but because they have lived with and overlooked issues the property the home may have that could really turn off buyers and decrease the property's value. Before demanding a specific asking price, consider these five rules.
1. Use Comps. Comparable sales will be a major factor when determining the listing price of your property. If a home on the next street has the same floor plan on a similar lot size with similar upgrades, odds are good that your home will sell for a comparable price. Your real estate agent will pull all of the comps relevant to your property before creating a listing price to show how they determined your list price.
2. Consider Improvements. If your home has new, energy efficient windows, a new roof and HVAC system, it should be listed for a higher price than a similar home without the upgrades. However, if your home hasn't seen an upgrade since it was built 27 years ago, expect a lower list price.
3. What is the Demand? Things happen that can change the demand for a neighborhood. Has school zoning changed? Is a highway system, industrial center or shopping center going to be built nearby? Your real estate agent will be able to help you determine what, if any, changes to the demand have occurred recently.
4. What are Your Priorities? If you need to move immediately and can't afford to let your home sit on the market at all, pricing it a bit lower than the competition could help you sell it more quickly.
5. Trust Your Agent. Before you choose a real estate agent, it's important to ask about their experience, their marketing plans, and how they would price your home. If you are uncomfortable about your list price, discuss this with them before you list. Before you choose an agent, check their reviews and references and make sure you will be comfortable working with them.