 |
...Continued - Page 2 of 2 (
1
2
)
Related Showrooms
• Renovation Experts - Put your home in good hands. Get FREE estimates on your project.
• Foreclosure.com - Foreclosed Properties in Your Area
• SelectBlinds.com - The window blinds and shades America trusts
Use Your Comps Correctly
Any real estate expert will tell you one of the most powerful pricing tools anyone has are what’s called “comps,” or comparative listings. These are statistics for recently sold homes similar to yours, usually in location, size and/or amenities. But while any licensed Realtor or appraiser will have access to comps, it’s not always easy to choose the right ones or to read them appropriately.
 |
Reducing your home’s price little by little can be a more expensive decision than pricing it competitively from the beginning. Photo credit: Alyson McNutt English.
|
First, make sure you’re looking at what has actually sold rather than what people with comparable properties are listing them for. “Too many owners focus on what other people are asking for their homes rather than what they’re actually getting for them,” Wethman says. And when you’re looking selling prices of comparative properties, pay close attention to the date the deal closed. “Even if a comp is just a few months old, you must apply regional trend data: If the market has dropped five percent in the last three months, you need to take that comp from three months ago and apply a greater than five percent drop to that price. Too many people price at the last sale without that extrapolation and they end up chasing the market down.”
To add to the complication of reading comps correctly, Wethman says your Realtor needs to know and understand your unique situation. “Not every market is declining,” she says. “Even in declining markets, there are neighborhoods that are doing just fine,” she says.
Consider an Appraisal
If you’re still not feeling confident in your analysis of your home’s value, it’s worthwhile getting an appraisal, say the experts.
“Most homeowners depend on their Realtor to help price their properties, and Realtors usually have a great deal of knowledge about what is and what isn’t selling in any particular neighborhood or at a particular price point,” Freeman says. “But the cost of an estimate by a state licensed or certified appraiser who is familiar with your neighborhood could save you months of extended marketing time and thousands of dollars in carrying costs by helping you price your home correctly from the start.”
Make sure you choose someone who understands not only your area but your purpose in getting the appraisal. You want to choose someone who is willing to talk to you and explain things, says Huettner. “Call three appraisers and tell them what you are doing, and choose the one who is most willing to explain things to you and help you,” he says. “If you are selling your home, $300 to $500 is worth it to have your own independent expert opinion of what your home is worth, and it’s invaluable for educating yourself.”
Be a Nosy Neighbor
Finally, don’t be afraid to be what Realtors like to call “the nosy neighbor.” “Start going to every open house in your neighborhood to get a feel for pricing vis à vis square footage, level of updating and so on,” Freeman says. “Realtors expect nosy neighbors. Don’t disappoint them.” An added benefit of being nosy: If/when the home sells, you will know more about it when you look at the comps.
While it’s important to realize the only number that really matters is the closing price, comparing the list to closing prices of the homes in your area will give you a good barometer for what direction prices are heading and how long you can expect to wait to find a buyer. “Drive around your neighborhood or go online to Zillow.com or other similar sites and view recently sold homes and listed homes,” Huettner says. “Just remember: Only closed sale prices matter.”
It can be tough to come to accept your home’s value in a declining or volatile market, Huettner says, but it’s better to deal with it when putting your house on the market than letting it languish for months if the price is too high. “You will eventually find out the market value of your home,” he says. “Don’t wait for the market to show you when you finally sell. It costs so much more that way.”
|
Text by Alyson McNutt English
© 2009 BobVila.com
...Continued - Page 2 of 2 (
1
2
)
< Previous Page
- Add To:
-
 Del.icio.us
-
 Digg
-
 Google
-
 Y! MyWeb
-
 Reddit
-
 Technorati
|
|
Related Articles
Related Tips
Related Videos
