When the time comes to price your house for sale, you maybe tempted to price with the price you paid for it. Add a healthy makeup and call it a day. Unfortunately, that strategy is unlikely to reslut in a true reflection of your house market value. There are strategies to help you figure out how much your home is worth, and that it will be sold in the market value not overpricing and can be sold easily.
First is abandoning your personal view. How much will a ready, willing and able to buyer to pay for your home. Buyers don't care how much you paid for your home or how many memorable moments you and your family shared in the home, or how much cash you need for the downpayment in your best home or how much time and money you've invested in your home's hardwood floors, fresh paints, brick walls, lush landscaping or other improvements.
Secondly, CMA's can be a great factor. So getting a couple of CMA's can be a great help for effective pricing. Invite at least three real estate agents to visit your home and give their opinion of its' like by selling price. Ask for a "Comparative Market Analysis" (CMA), which show the pices of comparable recently sold houses, on-the-market houses and homes that are on the market, but weren't sold. The on-the-market houses are the homes that are in "competition" for your home. Ask the agents why such house was included and whether any other comparable houses were eliminated from the CMA. Price recommendation based on CMA's aren't gospel. Some agents will tell you under price in hope of sparking a bidding war. Others will suggest a flatteringly high price to "buy" your listing only to demand price reduction a few weeks later. Now, you don't want that to happen. It could leave you penniless. Now remember, you are not hiring these agents, you are just having the inquiry about the exact amount or valuation of your property. So be careful on their very tentative words.
Another and the third thing is doing your own market reasearch. Go to open houses in your neighborhood and try to make an impartial assessment of how those homes compare to yours in times of location, size, amenities and conditions. Assuming all the asking prices were the same, would you try your home or someone else? Besides, calculating the price per square foot is another factor. The average price per square foot for homes in your neighborhood shoudn't be the sole determinant of the asking price for your home, but it can b a useful starting point. You don't have to base in that information as well. Again a reminder, you are not basing on these factor, you are just having the inquiry for effective pricing. Key is mind that various methodologies can be used to square footage.
Fourth thing is considering market conditions. Are home pricing in your area trending upwards? or downward? Are homes sellig quickly or laguishing? Will your home be on the market in the spring-home-buying season or the dealt winter? Are interest rates attracted to the economy hot or cold? Will you be selling in a buyer's market or a seller's market? Is the local job market strong on the employee bearfull of staff reductions?
Lastly consider the transaction terms. Some buyers have needs that go beyond the buttom line. If you're willing to close escrow quickly, you'll attract buyers like want to move in right away. If you can offer selling, financing, your home will appeal to buyers who need to stretch their financial resources. A lease-options can help first-time who need downpayment asistance. An can be found as well in www.ownyourhome.com.au. The more creative and flexible you can be in meeting the buyers needs, the more success you'll have in pricing your house to sell.