How to Determine the Price of Your Home

How to Determine the Price of Your Home

It is known that some homes can sit on the market for a year, while others can be sold right away. There are many reasons for this, but one of the most significant is the listing price.

If the price is too high, naturally, it won’t attract buyers. But if the price is competitive to the ones in the area and seems better than the competition, it has much better chances to be sold as quickly as possible. The simple secret is to use the well-known technique of comparative shopping.

Even though sometimes comparing houses with different styles, square-footages and locations can be rather difficult, it is still one of the best methods to use when determining a home’s market value. This process is called Comparative Marketing Analysis (CMA). Taking a look at assets, such as a swimming pool, bigger than normal living spaces, a fantastic view, adjacent city parks and other attractions, a real estate agent will begin to compare your home with similar properties, called "comparables," that have sold in the area within the last six months. Typically, CMA allows determining a realistic price range for your home, so you can sell your home rather quickly and not to loose your money.

However, the price range is strongly influenced by the time period during which you want to sell your house. You can consult with a real estate officer in the community to determine an average period of time that listings stay on the market. This period usually varies depending on the property and price range. Your agent will tell an approximate period of time he can sell your house within for a price that will be acceptable for you and a buyer. However, if you want to sell your house as soon as possible due to some reasons, like unexpected job changes or moving agreements you’ve made on another property, the price will probably go down significantly.

But if you do have enough time to market your home you can take some steps to find the right price for your property. Firstly, compare your house to the ones that were sold during the last 45 days as opposed to standard six months. Many things, like economy, are changing constantly, so if you consider six-month-old prices you can get rather inaccurate picture. Usually you should make about 20 comparisons of similar properties within a one-mile radius of your home to set up a really good price for your house.

A good thing to remember when selling your house is to think like a potential buyer. This will help you to set the price that will be reasonable, acceptable and speed up the sale

© 2010, Jericho Mortgage — How to Determine the Price of Your Home