Just because you think you know what your home is worth doesn’t mean that is what it is likely to sell for. If you really want your home to sell, you must be prepared to let an experienced realtor help determine the best possible selling price to ensure it sells. To calculate the ideal selling price, it takes a lot of experience, a bit of market savvy, and according to some a little bit of market psychology. Among the many things a good realtor may take into consideration are:
The Local Market
A good real estate agent will take a look at the listing and selling prices of homes similar to yours that are currently on the market or have recently sold for. Along with this, they will also take a good look at how many days the homes have been or were on the market. They also take a look at what those homes that were sold and the difference between the asking price and the final selling price.
Current Local and National Market Trends
Your real estate agent will look at what has been affecting home sales in your local area. They should also take into account the current trend in rising interest rates, what the prices for homes in your area have been doing, have they been going up or going down. Other things that might be taken into consideration are new companies that might be moving into the area and any plans for major improvements in the area such as new shopping areas, malls, parks, schools. All of these factors can have a significant impact on the selling price of your home.
Just because one or more homes in your neighborhood similar to yours may have recently fetched a high price, this does not automatically mean yours will. If you live in a neighborhood where your neighbors have junk cars strewn in their yards, don’t keep their yards mowed and picked up, the selling price for your home is likely to go down. On the other hand, if you live in a nice, well-kept area, this could make the price of your home go up.
The Perfect Price
The best way to ensure you will get the best price for your home is to list it for the “perfect” price right out of the gate. If you start out by listing your home for a price that is too high at the start and then end up reducing it several times before it finally sells, you may find you end up getting far less for it than it is truly worth. However, if you start out with a price that is too low, it may sell more quickly, but you end up leaving money on the table.
The best way to find out what your house is worth is to let a well-qualified realtor assess your home and then use the information to create a price they believe will help it sell, sell quickly, and get the highest possible selling price.