Picking the right price for your home can be challenging as each parcel of real estate is unique. Location, lot size, style, house size, and condition are important factors to consider. An experienced real estate agent can prepare a market analysis to answer the following questions.
- What have similar properties sold for in your area? Real estate professionals use historical data to compare your home to similar homes that have recently sold in your neighborhood.
- What is the active competition? The average buyer will look at 10-15 homes before making a selection. It is important to know how your home compares to the other homes the buyers will be viewing.
- Do you have deferred maintenance items? Most buyers are looking for a move in ready home and they will deduct their estimate of repairs from your asking price. You will most likely sell your home faster and for a higher price if it shows well. Your real estate agent can give you advice with staging and repairs.
- Will the property appraise for the selling price? If the buyer is using financing to purchase the home, the lender will require an appraisal, as the property is collateral for the loan. A licensed or certified appraiser will determine the estimated fair market value following accepted appraisal principles. If the property doesn’t appraise for the purchase price, then you may have to reduce the price in order for the buyer to get the loan.
Here is an example of an overpriced home that sold in Chisago City last month: it was listed in June 2014 for $475,000 and sold for $360,000 after 6 price reductions. Because it was overpriced, it took 496 days to sell, compared to the average marketing time of 94 days and the selling price was discounted 25% from the original list price.
Work with an experienced real estate agent to sell your home fast and high!
How did the real estate market do in 2015 compared to 2014? 2015 was another good year for home sales. Prices were up 8% over 2014 and marketing time decreased by 12% according to data compiled from the Multiple Listing Service>
Ask the Real Estate Agent is a weekly column by Cheryl Kempenich of Coldwell Banker Burnet. Submit your questions to firstname.lastname@example.org. All information is deemed reliable but not guaranteed. For legal assistance consult an attorney.