How to Compare the Prices for Selling a Property? Golden Rules to Remember
For the last couple of years, the market dealing with real estate has been sluggish. Prices are falling and sales have plunged owing to high inventory. And in such state of affairs, considering properties for sale, especially the residential ones, is not easy. Fret not, since we know, “Where there is a will there is a way” aptly fits here.
The right price matters
The one and most vital factor that a seller should consider while selling his property is pricing it correctly. This means picking the most appropriate price tag, that is, how much the house can actually worth. No homeowner will wish to overprice his property as they are likely to lose the newness of its appeal post in a few weeks of showings. On the contrary, do not lessen the pricing of the home too low as a property that is priced much below market value will get multiple offers which may cause trouble in take a decision.
Rules to remember
When it is time for selling a property, the owner needs to price it right using tangible factors. Below are some rules to remember while considering real estate properties for sale,
- Price is king– Asking price will help in determining how long the property will remain in the market. In fact pricing the home really high is likely to decrease the number of buyers that can cause their home in sitting in the market quite long. And if the home stays in the market for a considerable period it will build up the perception that something is definitely wrong with it. This can also make the buyer think that the seller is desperate to get an offer. On the flip part, pricing the home extremely low is likely to raise unwanted questions and create some skepticism when it comes to the true value of the home.
- Keep a track of the market history– For getting a comprehensive picture about the real estate; it is good to keep a track of the listing history related to a home. Always compare the original price with that of the ultimate sale price and also note the total time period the property had been in the market till it gets sold. Here a real estate agent can help. If a homeowner wants to accelerate the process, he may desire to price his residential properties for sale a bit lower but if profit is their motive they may have to wait for some time for a sale especially at the higher end of the scale.
- Compare fairly– A homeowner should always make sure that their comparison is fair. In fact if neighborhood is present in their city which is more desirable, it is vital to consider it in the competition.
- Supply and demand should not be ignored– Considering a buyer’s market having multiple properties for sale as well as sellers competing at their best to seek attention a homeowner may wish to quote a little less for their home to make it more attractive to the eyes of buyers. When it comes to a seller’s market today where there is much buyer’s demand and little home supply, the seller may wish to ask for a little more and maximize their profit.
- Use comparable sales– A simple means of figuring out the perfect price for a property is by comparing similar homes which have already been sold in the neighborhood. Rather than casing the neighbor’s home and lurking in the shadows, take the help of real estate professionals for checking nearby stats which will prove beneficial. It is good to compare the home with homes having same square footage and number of rooms. If the seller succeeds in finding comparable properties with similar outdoor space and floor plans it is all that can be desired.
- Consider special improvements- It is good to consider as to whether big improvements that a homeowner has made actually warrant a better asking price. For instance, if the homeowner has remodeled the kitchen or fixed a parquet floor he should ensure that such enhancements get reflected while considering the property’s price. The bottom line lies in being reasonable.
These are some simple yet effective steps that a homeowner needs to follow while comparing prices to sell a property.
Summary– This article throws light on some interesting and valuable facts related to real estate or residential property sale and the steps that a seller needs to follow for making the most suitable deal.