So you want to sell your home! You have already got your house for the market and found a realtor to work, so now it’s time to you list your home for the right price. If you ask too much, your home will not sell. If you ask too little, then you will be cheating yourself out of cash you can use on your next home. This “Selling a House Series” is made with years of experience on the best way to get your ducks in a row so you can sell your home at the price you want. Use the following the tips below to make the process much smoother on you…
Know This… What You Paid For Your Home and Updates Doesn’t Matter
There are ton of factors that fit into what your home is worth. Ultimately the housing market will determine what your home is worth. If you were shopping for a pair of pants and they cost $50 at the first first store you found but a similar pair costs $25 four doors down, would you pay $50? Probably not and that’s why the market decides what you can list your home for when you decide to list it. The market can help or hurt your efforts, so if you can, try to sell in a “seller’s market” if you aren’t in a hurry.
How to Create a Good Listing Price
- Comparables (comps) are the prices of similarly sized homes in your neighborhood.
- Automated Valuation Models (AVMs) take your address, plugs it into an algorithm, and out pops a home value.
- Realtor – A good realtor can ask more than the AVM for a property by selling a home’s unique strengths to customers who value those strengths.
How to Factor in Upgrades
You may have just put $15K into your kitchen but that doesn’t always mean you are going to recoup that money when you sell. Surveys by the National Association of Realtors has shown that the kind of upgrade you made will affect how much your home goes up in value. Refinishing hardwood floors usually bring homeowners back a 100% return for their investment. The study also shows that converting your basement into a living area will give you 69% back on your investment. If you are going to sell your home in 5 years or so, then make sure you upgrade it with options that will give you most of your investment back. Remember that not everyone loves a home theater or a pool or a hot tub.
Leave Some Room for Haggling
Most buyers will want to negotiate with you on the price of your home so leave some room to make the buyer happy. When adding a cushion to your list price, add it in $5,000 increments. Adding some cushion to your listing price will also allow you to cover closing costs for buyers that are cash poor. You get to sell you home for basically the price you want and the buyer is happy that you can cover the closing costs.
Know How Internet Searches Work When Setting Your Listing Price
A small increase in listing price can prevent your house from getting into a home search if you aren’t careful. Home buyers will search for homes using minimum and maximum pricing filters to weed out the house they don’t want or can’t afford. If you are just a couple of bucks above or below normal filters you won’t make the search cut. If a buyer is searching in the $250,000–$299,999 price range and your home is listed for $300,000 then you’re out of luck on that search. Consider moving down a bit in price when your listing falls on on increment of 25,000 or 50,000 or 100,000 to get into more searches.
Selling a House Series Posts
- Selling a House Series #1 - Getting Your House Ready for Market
- Selling a House Series #9 - What You Should and Shouldn't Do As You Move Out
- Selling a House Series #8 - What to Expect At Your Home Closing
- Selling a House Series #7 - What a Seller Should Do To Prepare For The Closing
- Selling a House Series #6 - Making the Right Deal
- Selling a House Series #5 - Creating an Ad and Marketing Your House
- Selling a House Series #4 - Fixing Up The Inside and Outside of Your Home
- Selling a House Series #3 - How to List Your Home For the Right Price
- Selling a House Series #2 - How To Find the Right Realtor To Sell Your Home
Tom Reese has 20+ years experience in helping his clients buy the homes they want at a price they can afford. Tom has helped his clients buy and sell property in every neighborhood in Northern Kentucky and Cincinnati.
About Tom Reese
Helping my clients attain their dreams has been the foundation of my success. With my strong attention to customer service, I have earned my clients continued support and referrals. Put my enthusiasm and dedication to work for you!
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Tom may be new to rapping but he’s not new to real estate!