single most important task involved in selling your house
on your own (or with an agent for that matter) is to set
the sale price correctly! There is nothing more
exciting for a seller than to have multiple offers on
their property. And, by having multiple offers you can
actually end up selling your house for more than your
original asking price when bidders fight for your home.
Before we continue we have to understand
a couple of simple definitions:
Market Value- The value of a home in TODAY'S
Assessed Value- Used by taxing authorities
to determine taxable value only. Assessed value is
NOT an indication of market value.
is Value Established?
The most accurate
way of determining market value is through an appraisal.
One appraisal method and probably the most appropriate
for residential sales is the "Comparative Market
Analysis" approach. Using this approach, the market value of a house is
based upon recent sales (preferably in the current year)
of at least three similar neighboring homes. Ideally,
appraisers want to use sales of properties of the same
size, age, rooms, condition and amenities. This rarely
happens though, so adjustments have to be made talking
into consideration what buyers might be willing to pay
extra for. Some examples include extra square footage, bedrooms, fireplace,
upgrading, parking facilities, swimming pool, lot size,
location and so on.
the advent of the internet it is now possible to get an
electronic appraisal right over the internet. For
and electronic appraisal click
with a good understanding of the factors that enter into
the valuation and after obtaining an appraisal of your
house you are ready to set the list price. Have
no doubt about it, your list price is perhaps the single
most important factor in your marketing and obtaining
a sale. The price you pick should be based on
both valuation and an objective assessment of current
market conditions. For example, are there a lot
of houses on the market in the area? Are houses
selling slowly or quickly? Is the economy well?
Are interest rates low or going up?
is usually a good idea to set the price a little higher
(5%) than the price you are willing to settle for.
This will give you some negotiation room.
Getting important market information prior to setting
your sale price will give you the best chance of selling
your home quickly and efficiently rather than having an
over-priced home sitting on the market for an extended
period of time causing potential buyers to wonder what
may be wrong with the house because it hasn't sold.