Last Updated on August 11, 2022 by HortonTeam
When it comes time to sell, one of the most important factors is deciding how to price a house properly. How do you make sure you’re getting all your home is worth? Try these three methods to figure out which price will help your home sell for the most money.
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Analyze Homes in Your Neighborhood
When asking how to price a house correctly, the location of your home is arguably the most important factor to consider. Since you can’t change the location where your home is found, it makes sense that your home should most likely be priced according to the other homes in your neighborhood or in a nearby area.
It’s common knowledge that some locations are more desirable than others, and that emotion is reflected in the way homes are priced. Although this method probably won’t supply you with the exact number at which you should price your home, it will at least get you in the ballpark. If all the homes for sale in your neighborhood are within the $120,00 – $150,000 price range, your home most likely won’t sell for $300,000.
Is your neighborhood in the middle of the county? Is it found along a body of water? These types of questions play a vital roll when understanding how to price a house, and comparing your home to those around you will quickly answer some of them. However, there are always exceptions to this general rule of thumb, so it’s equally important to look at data from past sales.
Look at Past Sales Data for Similar Homes
Many people who research how to price a house think that the listing price should reflect the price of the home when you purchased it. This method usually isn’t reliable, especially when a home has undergone a drastic renovation (in the case of an investment property) or if it has been modernized since the last sale.
An even larger factor to consider is the local real estate market in your area. Anyone who was searching for homes for sale in Newburgh or Evansville just a few years ago know that an intense recession in the local economy can dramatically increase or decrease the value of a home.
With all that being said, most real estate agents do look at past sales data. The reason is because these types of renovations or market health trends are more applicable to a home that hasn’t been sold in quite some time. By looking at past sales data of similar homes in the area which sold within the past one or two years, it’s much easier to find a comparable price at which you can price your own home that isn’t subject to some of these longer-play factors.
If you decide to use this approach when learning how to price your home, do your best to only use comparable homes that share similar features, have close to the same square footage, an equal number of bedroom and bathrooms, a similar kitchen, and so on. You’ll also want to focus on homes that were built around the same time as yours and those that are in close proximity.
If your home is a bit of a unicorn, it’s still possible to come up with a price based on adding or subtracting the value of features your home does or doesn’t have when compared to other nearby homes. This method is fairly common, but you may need some help from a professional to come up with these figures.
Who to Ask About How to Price a House
The best way to price your house properly is to consult with a real estate professional. Through a combination of experience, expertise, and access to non-public real estate listing tools, a real estate agent will be able to produce a fair price for your home that will ensure you receive the most money with the least amount of hassle.
Beyond showing you how to price a house, enlisting a team of real estate agents like ours will expose your home to the highest amount of buyers through targeted marketing and attention-grabbing technology. When you combine these elements with an accurate listing price, your home will quickly rise to the top when it’s time for buyers to submit their offer.
Are you ready to talk about your home’s worth? Our team is here to help you add the most money possible to your pocket. Contact us here or send our team a text at 812-518-0411 to get the ball rolling today!