Once the decision is made to sell your current home, it’s time to figure out what the price should be listed at. But how do you go about this?
Hire A Real Estate Agent
Hiring a professional real estate agent is the best first step. If you don’t already have a real estate agent, interview at least three (3) before you list. Speak to them about their experience, their areas of expertise and how they will market your home. Many agents offer free home evaluations so take them up on this and see what they think your home is worth before you sign the listing agreement. Don’t be afraid to ask for references and contact them to see what their experience was with the agent.
Review Sales In The Area
Looking at sales in the area is a good starting point in determining price. You’ll want to make sure the homes are similar to yours in size, location, age and features. You should focus on recent sales, from within the last few months.
What Should You Compare
When comparing your home against others in the area, make sure you are looking at similar homes to yours. Keep the comparison of other homes to within about 10% of your square footage, type of building, features such as attached garages, fireplaces, and how old the homes are all factor into being a “real” comparable. Ideally, you want to review sales from
the last three months but may need to stretch the timeframe if there have only been one or two sales in that time.
Ask your realtor about expired listings to see if it provides additional information on how homes were priced and why they possibly didn’t sell.
Don’t Overestimate The Value Of Renovation
If you renovated the home, be realistic in how much value the renovations may add to the price. Normally, you won’t fully recover the full cost of the renovation dollar for dollar. If, for instance, you spend $25,000 on the kitchen, you may only see an increase in overall value of around $15,000 or $20,000. Some renovations don’t add much value at all, so focus your efforts on what will give you the most bang for your buck.
Consider The Timing
If you have some flexibility on when to sell your home, consider the timing carefully. Spring and fall are typically the best time of year to list a home. For families with kids, spring is a great time to list because you can move during the kids’ summer break. In the fall, everyone is back from summer vacation and getting ready to settle in for the winter. Obviously not everyone can do this. Maybe a work transfer or relocation to another city means you need to sell at a different time of year. No need to worry, there are always buyers looking for their next home even in the “off peak” seasons.
The Emotion Out Of It
This may be easier said than done, but your love for your home doesn’t add to or increase its value. Look at the information provided by your real estate professional with an objective, open mind and use logic when discussing what the price should be.
If you’re ready to sell your home, contact One Flat Fee. We’d be happy to answer any questions you may have.
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