Pricing Your Home

1. How do I determine the best price for my house?
 When a buyer gets a loan, the bank will hire an appraiser to determine the value of that particular home. There are several factors the appraiser is looking at: Location, Year, Square footage, Number of bedrooms, Number of bathrooms, Amenities & upgrades, Garage, Lot size and more... The appraiser will be looking for an average of 4 homes very similar to the home in question so the buyer can qualify for the loan.

As a home seller you will have to do the same as an appraiser by searching for homes that have SOLD in the last 6 months in your area. Look for sold signs, look in county records, ask a few real estate agents or hire an appraiser.

2. Is there one major factor that determines price?
Recent SOLD "like" properties.

3. Should I price my home similar to those homes listed close by?
If these similar homes have been listed for quite some time and not sold, it shows that buyers are not yet willing to pay that price. The actual SOLD properties are needed.

4. Should I price my house high and test the market?
If you have time to waste - go for it. Buyers look at everything on the market for sale and if your home is overpriced they will simply pass it up. If an interested buyer does come along, the banks appraiser will turn down the loan. Additionally, many buyers feel that owners with homes above market value will be difficult to work with.

5. What if I need a certain amount of money to be able to sell?
The market determines the value of your home, not you. If the market indicates houses in your specific area are worth $150,000 to $155,000, that is all someone will pay. You need to then determine where the balance of the money will come from if you need a certain amount.

6. Does the cost of my improvements equal what I can get for them now?
Yes, if the improvements are similar to other homes around you. However, if you have over improved the house beyond the features offered in other homes in your area, the answer is no and you won't get the improvements back. Example: adding bedrooms, bathrooms and square footage to a home ads value. Adding granite counters, tile flooring, jetted tub, etc... may not ad value unless the homes in the area are offering similar improvements.

7. Does time on the market affect selling price?
Unless your home is unique, (farms, equestrian, acreage...), your asking price should be reduced after 45 - 60 days if no offers have been brought to you. Ensure your marketing your home and having open houses before you make any price changes. If no buyers have stopped by or called about your home, lower your price.

8. What if the house sells in the first weekend. Did I ask too little?
No. Many buyers just haven't found the right home yet and yours happened to came on the market at the right time for that buyer.

9. I have some sentimental items I want to keep, do I need to tell the buyer?
If buyers see it, they may want it. Usually anything attached or fixed to your home will stay with the sale. If you have special or sentimental items in the home, replace it with a similar product before you list. Example: Chandelier, designer drapes, special rose bush...  

10. Should I invest any money in the house before I sell it?
Don't spend more money than that's needed on your home. Simple things like paint, professionally cleaning the carpets, fertilizing the lawn, fresh beauty bark... are great ways to sell your home faster. Repairs may be needed if there are safety concerns or code issues within the home. If you have major repairs you may want to disclose it to the potential buyer and reflect it in the price or make the repairs before you list.

11. Do I really need to keep the house clean for every showing?
Yes, Keep it clean: pick up laundry, make the beds, put away the dishes... Everyone wants to look at a home in as perfect condition as possible and then imagine how they can make it their own.