Selling your home can be an emotional affair, looking at the memory you leave behind. However, you sometimes have no choice but to sell and relocate due to work transfer or wanting a change of environment.
“Financial problems can also lead you into selling your home. You may need cash so badly that the property becomes the last hope to raise that sum. But with that, there can be other options like taking a reverse mortgage loan, by selling some equity in your home,” says Cliff Auerswald, President of Reverse.Mortage
You almost forgot that right? There are online calculators for how much, reverse mortgage terms, your home is worth. However, if selling is the only option, follow these steps.
How to know you are getting a good selling price
No matter the reason you are selling your home, you surely would want to have a good price. The real estate market is, however, tricky. Several factors go into pricing a home. Getting a good price depends on factors, including the current position of the real estate market, economic situation, when you are selling it, condition, and even the location of the property.
With that being said, all things being equal, you would want a very good selling price. You wouldn’t want a buyer dictating the price or taking advantage of your situation, especially when you are selling it yourself without involving a real estate agent. Here are how to know the buyer is offering you a good price.
Set a fair and reasonable price at listing
Some homeowners normally overprice their home due to their emotional attachment to it and how they consider it valuable. Well, the buyer is just buying the home and not your memories and emotional attachments. They are also yet to create their memories in that house. So, be devoid of any emotions when setting a price range for the home. Consider the size, amenities, and locations and give a fair price. If this becomes challenging for you, follow the next steps.
Check prices of similar listed properties
One of the best ways to price your home without involving an agent is to use prices of similar listed properties around your neighborhood. The neighborhood factor is very important because similar homes can cost differently in different communities. For example, a three-bedroom home in a master-planned area wouldn’t cost the same as one in a suburban area. Also, consider the amenities in your home compared to those you are checking. Other factors like the age of the home, and maintenance cost, must all be considered. With this, you can know whether or not the buyer is being fair with their price.
Consider prices of recently sold properties in the neighborhood
If checking similar listed homes doesn’t give you a fair price, ask for how much recently sold homes went for. Normally, you contact the seller or buyer of the sold home about the home’s closing price. If possible, visit the said home and do the comparisons, if they have the same size and amenities as yours. This can be a little tedious, but since you’ve decided not to hire an agent, it is the best thing to do. If the asking price is lower than those sold in similar homes, then, look for other buyers.
Is the asking price in-between the highest and lowest price tags
Prices are not always the same on the real estate market even for a similar home in the same neighborhood. For example, you can have a three-bedroom home in the same neighborhood going for $190,000, $200,000, and $210,000. If the asking price for your home is in-between these set prices, then you are surely getting a good deal.
Get an expert opinion
It is okay not to hire a real estate agent when selling your home. Nonetheless, you may need a professional opinion on how much you can sell your home for. Do this by hiring a home appraiser. A home appraiser is professionally trained to give an expert opinion on a property’s value. They use several measures in reaching a price including location, size of the home, amenities, comparable prices, etc. Hiring one gives you a perfect price range for your home.Besides, the buyer will surely involve an appraiser, especially if they are financing the home with a mortgage.
On top of that, everyone knows the term realtor, but realtors typically work as agents or brokers, and they are members of the National Association of Realtors(NAR), a professional trade organization. In order to become a realtor, an individual must complete a certain number of education courses and pass a licensing exam.
Things that can work against you
Is the real estate market flooded with homes or not? In real estate, we have a seller’s market and a buyer’s market. When there are few homes on the market, it is a seller’s market, as demand and supply set in. The higher the demand, the higher the prices. Sellers get the best prices for their homes in such periods. On the other hand, when the market is flooded with more selling properties, it becomes a buyer’s market. Prices are less because of low demand in this period. So, selling the property in these times can work against the seller.
Prevailing local economic conditions can work for or against you when selling your home. In hard economic situations, the flow of money is limited as borrowing becomes harder. As a result, financing a new home becomes very difficult for new buyers.This automatically affects home prices.
Selling your home can always be tricky and it’s always best to involve a professional if it is your first time. Also, you need to study the local market trend,and economic situation among others to get the best price.That aside, the above points can help you when setting your price and getting the best price for your home.