How do I price my home for sale? The answer to that question takes a little more thought and creativity than it used to take in days gone by. In the Montgomery County and Washington, DC markets, we watched prices explode and almost double over a period of a few years ending in the late to mid-2000’s. Then, we watched in horror as home prices peaked and exploded, falling in a rush to levels equal to or below the pre-rise numbers. It has been like reliving the explosion of the space shuttle… lofty dreams of uncharted areas being reached turning to fractured hopes and yesterdays ashes coating a new reality.
Practices used in the past have no relevance today. The rise and subsequent crash and burn have occurred while other new paradigms were taking place. The manner in which homes are sold has been completely revamped. It used to be a simple matter of meeting with the most well known real estate broker in the area, evaluating the neighborhood sales, pricing your home, putting a sign out front, an ad in the Washington Post and waiting for offers.
Those days are gone. The internet has changed everything. Buyers begin looking for homes long before they know what they can afford. Buyers begin looking for homes long before they choose a real estate agent. Buyers sign in and begin searching for homes without any regard for the name of the broker. Information is free, available and overwhelming.
How do I price my home for sale? Initially, the answer will include some of the old methods. The clearest indication of market value is taking a look at market results. Understanding market results and making sure that the actual market results are the ones you are using is the challenge. The days of all homes being pretty much the same are long gone. While it is true that you need to narrow your market to somewhere in neighborhood of a two mile radius of your home, you need to cull the chafe from the grain within those parameters. Before the listing agreement is signed, you have to have an understanding of what the appraiser working for the lender being used by your potential buyer will be looking at when he appraises your home. This is a prime factor to be used in pricing your home for sale. The amount of money you want to sell the home for has little relevance if no one can get a mortgage to pay you. The hidden secret is that the lending institution being used by your potential buyer will have the last say in the sale of the home.
How do I price my home for sale? Bring in a real estate agent. Focus on one who knows your market. Focus on one who has a good understanding of the internet who might buy your home. Pricing the home for sale and the subsequent marketing of the home will be heavily influenced by information available on-line and the agent’s ability to use the internet to your advantage.
How do I price my home for sale? A broad overview indicates that you evaluate the actual market, come up with a reasonable range, visit homes for sale within your reasonable range and price the home accordingly. It may appear biased for me to advise you to use a real estate agent. It really isn’t biased, it is an opinion based on years of experience and seeing the results of those that chose to go it alone.
If you have any other suggestions, share them with me. If you would like to talk about this or any other article, call me at 301-509-5111.