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How to Set the Selling Price on a Home

written by: nataliajones•edited by: Donna Cosmato•updated: 6/28/2011

There are a number of factors that affect home selling; how to price real estate is examined in this article.

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    Home Selling; How to Price

    Home Selling How to Price While many home sellers instinctively think that their home is worth a particular sum, their calculations very rarely resemble the proper procedure on how to set home selling listing price values. To have a better idea of what is involved in arriving at a list price it helps to answer the following questions.

    How Does Your Home Compare to Others on the Market?

    Real estate agents have access to the most recent information on how much similar homes in the area have sold for and can therefore, perform a comparison with relative ease. However, if you are trying to sell your home without the benefit of an agent, there are still a number of ways to estimate your home's position in the market. You can look at other homes for sale on the internet and compare the location, size and condition of these homes with the same characteristics of your own home and then come up with proper comparables. These are the homes with which your home must compete, and so it helps to look at your home from the perspective of the buyer to arrive at a fair selling price.

    What is Included in the Sale?

    This is an important aspect of setting your listing price because it can either increase or decrease the amount you eventually settle on. Some sellers want to sell their homes completely furnished while others prefer to move with their furniture and leave only their appliances behind. The decision to sell furnished or unfurnished can also be influenced by the market as it is customary to expect furniture to come with the sale in some places while this is actually a disadvantage in other locations because the buyer may have specific tastes, or they may already own furniture. Whatever your final decision or the reasons behind it what is included in the sale should be listed in detail and factor into how to set your home selling list price.

    Is the Home in Good Condition?

    The condition of the home is also a major contributing factor to the price. Unfinished projects send red flags to buyers, and they mentally deduct money from their budget to bring the home up to standard so the more projects that need attention, the more you may have to cut back on your list price. While some home sellers leave too many things undone, others tend to go overboard on their improvements. Since a home must still compete with others in the market it can only be compared to the best in the area and if the property is renovated way beyond the standards of what is expected for the location you may not be able to see a return on that investment. This is simply because buyers in the area are not going to be willing to pay for the upgrades that push the home way above all the others in the market.

    These factors are typcially the most important to how to set home selling list price.

    References;

    forsalebyowner.com - Tips for Home Sellers

    Image: renjith krishnan / FreeDigitalPhotos.net






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