When you decide to sell your house it is an exciting time. Just like when buying a house a lot of preparation has to go into getting the property ready for sale. One of the first and most important steps in the process of selling a house is determining the price. Whether you are selling For Sale By Owner (FSBO) or have chosen to work with a Realtor® , getting the price right is essential to insuring the quick sale of your property.
Determining a Price for your House
After you have decided to sell your home, the first step is to set a price for the sale. This first step is one of the most important steps. If you do not price the home correctly, it may go stale on the market, or sell for less than what it is worth. There are several ways to determine the value of your home.
- If you are selling FSBO research the value and comparable properties online and determine a fair market value. Online estimates are fallible so take the information with a grain of salt.
Zillow CEO sold his home for way less than Zestimate! Read more…
If you are working with a Realtor® do this as well. This way when you sit down to discuss pricing with your Realtor® you have a basis from which to begin a dialogue about the selling the price.
- Review your Realtor’s® comparative market analysis (CMA) and together determine a price. If you are selling FSBO request a free one from a licensed Realtor®. Click here to request one for FREE.
- Order an appraisal from a licensed appraiser. An appraisal will cost $250 or more depending on the size of your property.
If you are selling FSBO, and are trying to determine the value yourself using a free online property value estimator, nothing automated can compare the experience of a Realtor® or a licensed appraiser. Ask for the help of a professional, it doesn’t make you less savvy, it makes you savvier!
Be Objective When Pricing Your House for Sale
Pricing your home should be an objective endeavor. While your home may have sentimental value to you, that value does not mean anything when it is on the market for sale. If you choose to determine the value yourself try to remain objective. If you choose a Realtor® or licensed appraiser remember that they are professionals providing an educated, informed and objective opinion about the value of your property. Listen to what they have to say and ask questions so that you understand what your home is worth and why. Remember the most important thing is to get the price right. When the Price is Right your home will sell and sell fast!
TIP : To learn more about the costs of selling a home and how much money you will net in your pocket ask your Realtor for an estimate of closing costs.
The Pitfalls of Pricing too High
If you price your property too high it will linger on the market and any initial interest will wane away quickly. When buyers and Realtors® see a property that has been on the market for too long, they assume something is wrong with the property or that the owner is really not seriously motivated to sell it. So it is very important that you price your home at a value that conveys to buyers and their Realtors® that you are indeed ready to sell.
The Pitfalls of Pricing too Low
If you have chosen a licensed Realtor® to help you price your property you will probably not run into the problem of pricing it too low. A good Realtor® knows what to do and has a responsibility to get you the most amount of money possible for your home. However, if you have chosen to sell your home FSBO that may not be the case.
If you price your home too low, and sign a contract that is below what the home is actually worth, you have to honor the sale price. Once a sale price has been agreed upon, as the seller, you will be hard pressed to get out of the contract if the appraisal comes in higher. What that means is that if the appraisal determines your house is worth $20K or $30K or even higher than the agreed upon sale price then you must honor it. Failure to do so could put you in a legal quandary and that is going to cost you more money than if you had priced your home correctly in the first place.
The Price is Right
Whether you choose to work with a Realtor® or to sell FSBO do your homework, gather and evaluate the data and make sure that you have priced your property right. Any property, if priced properly, will sell and will sell quickly. So remember the moral of the story is Price it Right!
Désirée Ávila was an award winning teacher for 10 years and has a doctoral level education in Educational Technology. Désirée is now a licensed Florida Realtor and committed to a high-level of professionalism and to helping others with their real estate endeavors through education.