As featured on Times News Real Estate
Details for TIMES NEWS REAL ESTATE - Ad from 2019-06-08
AT HOME: Tips for pricing your house Weigh all the factors in value By Lee Enterprises newspapers Y our home is easily worth thousands more than its market value. You know this because it’s your home, where you have your memories and your refuge. But, you can’t always expect buyers to see the value in your home. So where do you start with pricing? 1 Just the facts 2 Numbers and more numbers 3 Begin with the neighborhood and the facts. If houses in your neighborhood have sold, see if you can find the selling price. In many states (but not all) home sales are a public record. Remember, though, not all homes are the same in terms of square feet, bedrooms or lot sizes, all of which can change the price dramatically. Look for similar properties in your area that have sold for the best idea of price and market. Getting an idea of value isn’t just about the asking price or the selling price. It can also be determined by the average days on the market, or the number of houses in each price range — in other words, the inventory of houses. For example, if there’s a lot of inventory in your price range, the house may sit on the market longer, or command a lower price. Also, consider how the price looks to a prospective buyer. As a percentage there may not be a big difference between $205,000 and $199,900, but because one group of buyers may set their limits at an even-numbered threshold, consider if a price adjustment may help attract more buyers. Updates Not all houses are cared for equally. A house that has three bedrooms and two bathrooms may have considerably less square footage than a three-bedroom, two-bathroom house a few blocks away. Part of your home’s value is how much you’ve taken care of or updated it. Kitchens and bathrooms are one of the key spots for remodeling, and doing it right can help add to the value of your property. Conversely, appliances that are in harvest yellow and avocado green may be a deterrent because they’re dated, lessening the attractiveness of the home. 4 Compare houses to houses When you look at comparable properties, don’t just look at asking prices. Try to find the selling prices, either through public records searches or your real estate agent. Remember, a seller can ask any price, but it takes a buyer willing to match it. When comparing properties be sure to consider: Number of bedrooms Lot size How many floors? Overall condition of the property (and has there been updates to it?) How many square feet? Is all the house finished (or is there an unfinished basement?) How many bathrooms? Does it have a garage and if so, how many car capacity? When trying to get an accurate value of your home, these items can make a big difference. Make sure you look at houses that are comparable. 5 Comparative market analysis Your real estate agent can help you with a comparative market analysis. While it’s not the same as an appraisal, it can be used to compare your property with similar sold or listed properties in the area. Remember that agents have access to multiple listing services and property information that may not be readily accessible. They’ll also be able to help you consider the strength of your market. Still, it will be up to you to choose your listing price. 6 Appraisals are it Appraisers are the final authority on value. They’ll determine if the sales contract price — and the home loan — are supported by the market. Buyers pay for the appraisal, but it is done on behalf of the bank. Appraisals vary from market to market, and appraisers can be urged to reconsider value if something was left out — for example, a bedroom wasn’t properly counted.