Friday, February 27, 2015

How Much Should You Sell Your Home For? (Part 2)

Parting with your home to put it up on the market is no small feat, and among the most important considerations you'll have to make is its pricing. How much is your home worth in today's market? How much should you sell it for?

Price is almost always what makes or breaks buyer interest. If you overprice your property, you won't be able to reel in as much buyer interest as you should. Buyers will be put off by its expensiveness. So you have to be realistic and choose a figure that corresponds to your home's worth in today's market.

Once you’ve gathered sufficient information from a comparative market analysis (CMA), as detailed in Part 1 gear up for the next step. There’s more research involved. From here on, you have to examine the current trends in the real estate market, especially those within your neighborhood. Some questions to ask yourself would be: Are there more people buying homes in your neighborhood (ie. are you in a favorable “seller’s market”)? Are there more people selling, instead (ie. a “buyer’s market”)? Or is there currently a balanced or neutral market (having a balanced number of buyers and sellers)? Have prices in your location gone up or gone down in the past few years? How have the sales been for the type of your property, specifically?

A good strategy would be to price your home ahead of the curve. Price it at an affordable figure to anticipate the slow season, ensuring that your home wouldn't grow stagnant on the market once the decline is in full swing. In a seller’s market, aim for a slightly higher figure, especially if your neighborhood is a "hot" market: that is, growing in popularity and value. Signs of an “upward” neighborhood include future or ongoing developments, such as a new township, a school, a mall, or an upcoming major highway nearby -- projects that would increase the number of amenities as well as the accessibility of the area. Consider adding up to 10% more to the last comparable sale in your neighborhood to your asking price, given this upward trend.


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