Pricing You Home to Sell

by Kevin Spacey
When it comes time to sell your home, settling on your list price is one of the most important decisions you will make. All sellers want to command the highest price possible, while all buyers, of course, want to buy a house for the lowest amount they can. Finding the price in between that is just right for your home, its assets, and its area, is a process that involves many factors.
The first factor in pricing your home is, naturally enough, your home itself. The desirability of the property will be the deciding factor in what price to set. It's an excellent idea to get a home inspector on the premises to check out all aspects of the house, including the roof, electrical systems, and plumbing. Get a clean bill of health for your house if possible, and seriously consider making any needed repairs. Buyers today want model-home houses.
In fact, many buyers will not move in to a property if there is even a small amount of work that needs to be done. In a seller's market, you may be able to get away with selling a house that needs small improvements, but it will lower your list price.
Call in local agents to help estimate the true market value of your home. It's best to get more than one opinion on this matter. Talk to appraisers and agents who work in your area and are familiar with the neighborhood, as they will be able to factor in the prices of surrounding properties, as well as the desirability of the area.
However, don't spend money on getting a formal market appraisal. Local real estate agents will have a better idea of the area and be able to price your house according to current market trends. Don't be afraid to point out certain features or traits of your home that may justify pricing it slightly higher. For example, if you have a bay window, or a carpeted basement that provides more potential living space, you have a slight edge over similar houses, and those factors should be taken into account.

Once you have settled on a fair price for your property, it's time to set your actual price tag. It's expected that most sellers will initially price their home at about 15 percent above its actual market value. The selling process will involve bargaining, and depending on the condition of the home, any possible repairs, and the amount of potential buyers, the amount it sells for will more than likely be less than the price for which you have it listed. So aim a little high and be prepared to receive various offers on your home based off your initial price. If you've done your appraising and calculated correctly, when the final paperwork is signed you should be receiving an amount very close to your home's actual worth.