August 20th, 2016 8:55 AM by Mark R Yorke
Bottom Line - If your home is not priced correctly then your home will not sell!!! Actually, this is the top reason homes linger on the real estate market.
Selling a home has many challenges to overcome and the emotional strain can be a huge weight. To reduce the stress, sellers should find out how much their home is worth because it is the top secret to the home sales process. In order to do that a seller must have creditable resources from an accurate place. Unfortunately, many sellers start looking for their property's value from sources with the wrong information like the county tax assessment, zestimate tool, or what their neighbor's home sold for.
The tax office determines value using a completely different method than a real estate agent does when pricing a home. Their amount is used for property tax calculations. Zillow openly claims that their zestimate tool is an estimate (hence the-play on words-name) and should only be a starting point for the home sales process. Sellers looking to neighboring sold homes misunderstand that a home has to be specifically comparable and accurate. There are many factors involved when pricing a home so using an experienced real estate agent to navigate the top methods to determine a home's value is a must!
Top 5 Factor to Consider when Pricing a Home!
Recently Sold Homes - Location, sold date, and how comparable a recently sold home is to the potential seller's property are all analyzed to determine the best price. This is the number one factor a real estate agent uses to gather facts and calculate the home's value.
Pending Sales - Homes that have recently gone under contract shed light on the activity in the current local real estate market. Another valuable pricing tool is to research these homes and the factors that surround them.
Market Condition - Overall the real estate market in the USA has been improving although each city has different rate of increase. Some neighborhoods could experience a decrease in home sales or value for a period of time, and understanding the market a home is in is imperative to pricing.
Current Inventory - What is happening in a market is reflected in the current inventory of homes. Abundance of homes? Then it may be a buyer's market and sellers need to take this into careful consideration when pricing their home. They may want to price more aggressively to get “noticed”. Limited supply of homes? This might suggest a seller’s real estate market and allow for a bit of flexibility in pricing.
Actively Listed Homes - Closely comparable homes that are active on the market will be the home's competition. Real estate agents scrutinize these homes to determine what a home is up against. Here are just some of the questions they consider. What does this listing have that this home does not? A pool or boat lift? Is this a better quality kitchen? How long has this home been listed on the market? This is a very important step because poor pricing could actually sell the competitions home.With so many things to consider it takes experience, skill, and accurate resources to price a home correctly! The help of a professional real estate agent can smooth this process out and make selling a home more profitable and enjoyable!Thinking of selling your home? The skills and expertise of a professional real estate agent is just a phone call away!