Anyone who starts to think about selling their home, the first question that runs through their mind is how much should they sell it for. It is very important to price your home: if your price it high, it may be on the list for many months but if you price it too low, you may get way less money than what your home is worth.
First and foremost, the information you will get from working with your realtor will put you on the right path to determining the price of your home. This is once you gather all necessary information and paperwork in order to decide on a price.
Market Value Versus Assessed Value
Its important to know the difference between the market value of your home and the assessed value of your home. Market value is what the home is actually worth based on the current market. But the assessed value is based on the appraised value.
Of course, the market value is based on the prices of other homes in the area. This all takes into consideration what the future construction of the homes will add to the value of your home such as roads, shopping centers, schools and much more. It is apparent that the market value is usually higher than the the appraised value and is usually the price used for the listing and marketing purposes.
Now you may wonder what determines the assessed value of a home. Attributes such as busy freeway nearby, any improvements made to the home, dimensions of the home and the quality of the construction used to build the home.
Pricing Your Home Under Market Value
It is very risky in this day and age to list your home under the market value and why, you may think. You may think that pricing it under the market value may bring in a lot of offers since many people would want to buy them. This plan has backfired in many situations if the house is priced too low and the seller receives only one offer.
It is beneficial if you're in a hurry and want to sell as fast as possible though.
Pricing Your Home Over Market Value
Overpricing your home will not compare well to the other homes on the market that are on sale. Usually it makes potential buyers run away from the particular home. And sometimes, reducing the price of your home will only lead the home to be on the market for a longer period of time.
The longer a home has been on the market the easier it is for buyers to ask questions regarding on why it has not been sold yet.
Use a Experienced Realtor To Price Your Home
The key is to have a realtor on your side to make sure you get the best priced home possible. Realtors are market experts. They know positives and disadvantages. They will know what exactly your home will need to sell at the best price possible. They will use a Comparative Market Analysis to compare your home to other homes selling in the area. They will go over the size, extra amenities, garages, appearance to price your home at the right price.