If you’re considering selling your house, you really need to start thinking about the price. You need to take into consideration time on market. With time on market, it works against you. The longer your house sits, the less likely you are to get a full price offer. You really need to start thinking about how that compares to what your goals are. What are you trying to accomplish? Are you trying to move in a certain time? Do you need to be somewhere before the kids start school or in time for a new job? If that’s the case, you need to have your house priced to sell right away.
Also you’ll want to consider value vs. cost. When you put upgrades in your house, most of the time you’re doing it because it’s what you like, it’s what you value. Not necessarily everybody is going to value the same things that you do. You really need to take into consideration what an item costs to you and what an item costs that a buyer is willing to pay for.
When pricing a home, you’ll want to use comparable sales in the area. To do this, you’ll want to find homes that are around the same number of bedrooms, bathrooms, and around a similar size square feet. If you can happen to find a home that has the same floor plan as yours, great. The more the better. A realtor will be able to help you with this and they’ll be able to tell you exactly what your house is worth compared to other properties in your neighborhood. Remember, the market dictates what your house is worth. It doesn’t matter what you pay or what a neighbor thinks it’s worth or what any friend might tell you your home is worth. The home is only as worth as much as the market says it is.
You also need to be aware of a buyer’s market versus a seller’s market. Your realtor can help you understand the difference in the two and how it’s going to affect your pricing. For instance, if it’s a buyer’s market, that means that there are more homes on the market for sale. If you’re competing against more homes, you’ll need to be more competitive on your price to get the house sold as quickly as possible.
During the seller’s market, that means that there are less homes for sale in the area. With that being said, you might be able to get away with pricing your house in a way that maximizes your profit because you are one of the only homes that are for sale.
Just remember to take these things into consideration when pricing your home and use the expertise of your realtor to get it priced correctly.