Getting the price of your home right from the beginning not only saves you time, but it could also help you walk away with more money. And who doesn’t want that? For starters, avoid these two common pricing mistakes:
Mistake #1: Get Personal
Up until now, your home is probably one of the most personal investments you've made. It’s easy to feel nostalgic about the memories made and see your home through rose colored glasses. But you can’t put a price tag on those memories. Instead, look at your home through a buyer’s eyes. That kind of reality check will keep you from setting a price that scare off potential buyers.
Mistake #2: Trust the Internet
Sure, there are dozens of websites that claim they can determine your home’s value, but as you dig into the research you’ll find that these numbers are NOT accurate. There's simply no computer that can generate a number that accurately takes into account all of the features that make your home unique. Only a real person can do that, so it’s critical to work with a qualified agent who can advise you on setting a realistic price range.
|Request a Free CMA||The Comparable Market Analysis (CMA) is used to illustrate properties that closely match your properties characteristics, which will help in establishing a fair market value. The “Comps” are what other similar homes in your area are selling for, and they often determine, for better or worse, what price range your home will fall in. Always use CMAs when arriving at a realistic assessment of your home’s value. When evaluating your property, we use much of the information a professional appraiser would consider:
|Main Factors that influence Home Value||
|Tax Assessment||Don’t just rely on the property tax assessment. Many property tax assessments are out of date, and they don’t necessarily reflect the current real estate market.|
|Hire an Appraiser||A certified residential appraiser will come to your house, measure the property, take notes and photos, research information about any land parcels, and assemble a list of comparable sales in your neighborhood to determine the value of your home. Many banks keep a list of reputable appraisers they contact for refinancing or mortgage loans; ask your local branch manager to refer you to an honest, qualified professional. Once you receive your copy of the appraisal, make a second copy and store it in a secure location. Keep the first copy on-hand to go over with serious buyers.|