If you’re getting ready to put your home on the market, one of your biggest fears may be selling it below value and losing money. You’re likely asking yourself, “How much is my house worth?” Even if you have an idea of your home’s value, there are certain steps you should take to find out exactly what it is. By taking these steps, you can increase your chances of selling your home at (or even above) market value.
Understand What Market Value Means
Contrary to popular belief, market value does not have to do with your monthly mortgage payment, your opinion of your home, or the memories you’ve created there. Market value is the amount of money buyers would be willing to pay for your home. The following factors will likely play a role in your home’s market value:
- Location: If your home is close to major highways and shopping centers, your value will likely be higher than if it were in a rural area far from everything.
- Square footage: Of course, the bigger your home is, the more it’s worth. Buyers would expect to pay a higher price for a 3,000-square-foot colonial than a 1,300-square-foot ranch.
- Updates: Is your home updated or does it need many improvements and upgrades? Buyers will place a higher value on your home if they don’t have to do much to it.
- School district: If the schools are highly rated in your area, your home is worth more than a comparable home in a less-favorable district.
- Time of year: Your home will likely sell for more in the summer months than in the middle of the holiday season.
- Amount of similar homes in the area: If you have one of the only ranches around, your home valuation may be higher than if it were one of the hundreds of colonials for sale.
There’s no denying that you have a personal attachment to your home. Regardless if you’ve lived there for a few years or decades, you may think it’s worth more than it actually is. It’s important to remain objective and avoid listing your home for what you think it’s worth. Remember, market value is what other people, not you, are willing to pay for your home.
If you estimate your home’s value too high, it may end up sitting on the market for quite some time. This may cause buyers to believe that there’s something wrong with your home and prevent them from even looking at it. This situation may force you to reduce the asking price of your home significantly and even drop it below market value to get people in the door.
Invest In A Pricing Report
A pricing report from a reputable company can help you determine the market value of your home. For Sale By Owner offers Pro Pricing, which includes three comparable homes recently sold in your area, three comparable homes currently on the market, and recommended repairs. Data on the neighborhood, estimated time on the market, and comments by real estate professionals are included as well.
After a pricing professional has visited your home, you can expect to receive the Pro Pricing report in 5 – 7 business days. There is an expedited service that will provide you with a report within 3 business days of your appointment.
Be Strategic About The Asking Price
If you find out that the market value of your home is $205,000, listing it with this exact asking price is not a good idea. Here’s why: Most buyers search for homes using $20,000 or $25,000 increments.
So, if you list your home for $205,000, buyers who are searching for homes in the $150,000 to $200,000 range will miss it. If you ask for $200,000 instead of $205,000, more buyers will see your home and you may even be able to start a bidding war to sell your home for above market value.
Get A Pro Pricing Report Today
By knowing your home’s value and listing your home close to that figure, you can set yourself up for success. If you’re getting ready to sell, a Pro Pricing report may be just what you need to sell your home quickly without losing any money. We encourage you to get one today!