Evaluating a home before making it available to the public is probably the most critical part of home selling. If you make an over-appraisal of your property, you may turn off potential buyers. But if you settle on a price that's too low, you end up with a loss.
Today, buyers and real estate agents can have access to data that can guide them to arrive at a decent ballpark figure for a certain property. People will know if you are overpricing the house, says Patch.com. Here are some of the things you have to consider when pricing your property.
Comparative Analysis of Sold Properties
It is fitting to make a comparison of sold properties near your home. This is one of the most ideal approaches to come up with a fair value for your property, notes Patch.
Search for similar properties that were sold from the past six months. For a highly dense neighborhood, search for similar properties within half a mile radius around your home.
Comparative Active Properties
Just like the first step, conduct a comparative analysis of your home with different properties that are still available. This will give you the right viewpoint on whether you are asking too much for your house or if you're being too generous.
Pay attention to those homes that have failed to attract buyers at their price point, and consider selling your home at a less price to gain advantage over the competition.
Current Inventory
When you search for similar properties on the market, you might need to take a look at the competition in general. Real estate is about supply and demand, Patch notes. If the supply is huge, buyers will have more alternatives and will opt to pay less. Limited supply, on the other hand, is an advantage for sellers because home buyers will be forced to offer a higher price for the properties.
