It is important to set the right price for the sale of your house. A house that is priced too high will be on the market or a long time and may not sell at all. It also helps out your competition in the area since buyers are looking for a deal. If you price your house too low it will sell fast but you may not get the full market value you deserve from your home.
Who Controls the Market Value Price?
First of all, agents do not control home prices. Agents will keep track of recent sales in the area and report this information back to the seller so the seller can make an informed decision on where their house will enter the market. The housing market is affected by the overall economic conditions in the area. The true market value for a home is what a buyer agrees to pay and a seller accepts. It is a similar process for setting market price on the stock exchange.
So How Do I Get the Current Market Value of My Home?
There are sites you can visit that will give you an estimate of what your house is worth. But they aren’t entirely accurate. For more information, you can read my post But Zillow Says My Home is Worth… To get a more accurate value, a REALTOR® can give a Personalize Market Analysis of your home (also known as CMA). This is a comparative process that looks at similar homes that have sold recently, are active or with a contract pending, and expired listings. The sold homes tell you what buyers actually paid, the homes for sale give you an idea of your competition and the expired listings (failed to sell) tell you what buyers are not willing to pay for homes in the area at that time.
How Will Condition Affect the Sale of My Home?
Price and condition are the 2 key elements that determine the number of showings your home will receive. Buyers like homes they can just move into without having to do a lot of work. So homes that are close to “model ready”, will generate a lot of showings, PROVIDED it is priced right. Even a home that is in pristine condition will have few showings if it is priced too far above the market. The flip side of that is a property that needs some updating but is clean (think 1970’s kitchen and baths). Even if the property is clean and priced right, the dated feel will limit the number of showings to people who are willing to take on the work. Having a property that is in good condition (no updates needed), clean, and priced right will generate the most showings.
So Now What Do I Do?
As you can see, there is a lot that goes into pricing a home in today’s market. If you are looking to sell, contact me for a free, no obligation market analysis of your home.