If you really want to sell your property when you put it on the market there are some things you must know. For example, the most important thing is the actual current market value of the property.
Follow these instructions and you can appraise your own property and come up with a figure that's accurate within a couple of percentage points.
- Find and call at least three local realtors and tell them you're thinking about selling your property. Ask the agents to make a comparative market study of your property. Tell them to include every sale in your market area that compares to your home or property. They'll call you back later and want to set an appointment to deliver the information and tell you about their company and ask you to list your property with them.
- Make an appointment and let them make their presentation, then ask them to leave all the information on the property analysis and their company, so you can study it and make a decision.
- Once you have information from all three realtors, lay it out on a table and create a work sheet. List each of the Sold properties on a separate line, with their selling price per square foot on the far right. Don't include the active listings that are up for sale, because they aren't relative to your study in determining the value of your property. Hold on to the information, active listings will be important later in determining the price you wish to ask for your property, because active listings will be the properties you are competing with. In other words, you will be competing for the buyers that are available in the current market who will be looking at other listed properties.
- Add up the column on the right and divide the results by the number of properties on your list. Multiply this number by the number of square feet in your home, and the result should be the current value of your property, within a percent or two. The number you arrive at may be lower than you are comfortable with, and in some parts of the country it's a shocking reality.
If you are going to put your house on the market and want to sell it you must be competitive. More than ever you will have strong competition such as from properties that have been foreclosed on for default on loans and taxes. These homes are often priced below the market for quick sales. You are in competition with other property owners who are selling their properties to avoid foreclosure and these are often priced below the market. There isn't nearly as much demand as there is product. In other words, there are a lot of homes/properties for sale now, making it a "buyers market."
So there you have it: a simple approach to pricing your home correctly.
Stay tuned for my next blog where I explore the advantages of pricing your home to sell.