Pricing Your Home In Lebanon and Laclede County Missouri
Setting the price of your home is one of the most important aspects of selling it. Too high and potential buyers won't even consider it. Too low and you cheat yourself. The following is a list of things to keep in mind when pricing your property.
- Consider comparables. What have other homes in your neighborhood sold for recently? What are other similar homes in your area priced at? How do they compare to yours in terms of size, upkeep, and amenities? It is very important to consider what similar homes are priced at. Buyer's want to feel like they're getting a "deal" when buying and tend to skip over homes that are priced even $1,000 more than other homes in the area.
- Consider competition. How many other houses are for sale in your area? Are you competing against new homes? More up to date homes? Older homes? As an example, let's say your home is identical in floor plan, size, and price to another home in the area but the other home has had a complete remodel. The other home would most likely be chosen first by the buyer since it has more updates at the same price.
- Consider your contingencies. Do you have special concerns that would affect the price you'll recieve? How much do you have to net? Do you have a deadline to sell/move? If you're up against a clock and have a deadline to sell your home, you may want to price it below what comparable homes are going for in order to sell it quicker.
- Get an appraisal. For a few hundred dollars, a qualified appraiser can give you an estimate of your home's value. Be sure to ask for a market value appraisal.
- Ask a lender. Since most buyers will need a mortgage, it is important that a home's sale price be in line with a lender's estimate of it's value. NOTE: Some mortgage companies use the "drive by appraisal" method. This method is not an accurate appraisal as it tends to value the property location and surroundings more than the properties actual amenities.
- Be accurate. Homes priced higher than 3 percent over the correct price take longer to sell, if they sell at all.
- Know what you'll accept. It is critical to know what price you are willing to accept before beginning a negotiation with a buyer. Make sure to take into consideration your payoff, closing costs, pro-rated taxes, etc. before settling on a final number. Your REALTOR can help you with these numbers.
- Hire a Realtor. Realtors price homes every day and are aware of market conditions and the values of similar homes. They work with buyers daily and know how much a buyer would be willing to pay for a particular type of property.
NOTE: There are agents out there that will tell you your property is worth more than it is just so you will list it with them. Be wary of listing with any real estate agent that practices this behavior. They are only interested in getting your listing, not selling your home.