Setting a price for your home is a big decision. But don’t worry, you have help.
When it comes to selling your home, assigning a price is complicated. This is where you made many great memories and invested money.
When buyers look for a home, they’re more concerned about price than value, usually. The price of your home can be one of it’s most attractive, or unattractive features.
Your agent will help you set the price for your home based on similar homes in the area. If the price is too high, it can sit on the market too long, making buyers think there’s something wrong with your home.
Even though your agent will help you set the price, you need to have your own idea of how much your property is worth. Here’s how to get it.
Work With Your Agent
Working with your agent is critical for setting the right price. They know the market and will bring their knowledge to the table.
To understand whether your agent is pricing your home properly, read through each of the steps below. Use what you learn about your home’s fair market price to evaluate any price your agent recommends.
Throughout the pricing process, a good agent will:
- Listen to your needs
- Take into account your research
- Use his or her knowledge of the local market to help you pick the best asking price
You’re a team. It’s in both of your interests to price your home correctly. A timely, profitable sale is win for everyone. Don’t let your emotions or greed get in the way of selling your home.
You Should Also Check the Internet
You can use the internet to a certain extent to get an idea of how much your home is worth. Just remember that any online home evaluation is an estimate, and is only meant to give an idea of where to start when setting the price. These tools base their estimates on your home’s square footage and real estate data they’ve collected, such as recent home sales in your local market.
But those results are estimates based on generalized factors, not your unique situation. If at any point the price you see in an online calculator doesn’t align with what your agent suggests, prioritize the agent’s advice. Remember that your agent knows more about the market than online estimators, and that these online tools are meant only as a starting point.
Know Your Local History
What your home’s listing price should be largely depends on what similar homes, or “comps,” recently sold for in your area. To price your home, your agent will run the average sales prices of at least three comps to assess your home’s value.
What constitutes a comp? A number of factors, including a home’s:
- Age
- Location
- Square footage
- Number of bedrooms and bathrooms
Agents will look into the difference between each comp’s listing price, and the price it sold for. He or she will consider price reductions and why they happened, if relevant. All the while, your agent will also rely on inside knowledge of housing stock and the local market. That nuanced understanding is invaluable, particularly when measuring the unique aspects of your home with raw data about comps.
When selecting comps, agents generally look for properties that sold within a one-mile radius of your home, and in the past 90 days. They find these homes using the multiple listing service (MLS), a regional database of homes that agents pay dues to access.
Check back on our blog every week for more real estate advice and local articles about living in Albuquerque. And make sure to follow us on Facebook for up to date real estate news for Albuquerque and surrounding areas.
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