Pricing Your Home to Sell
If there’s one thing that buyers and sellers usually don’t agree on, it’s what a house is worth.
A seller thinks they have the best home in the neighborhood and that it’s worth more than anyone else has ever sold for.
A buyer thinks that they will need to make changes to a house to make it their own, so it should be worth less to account for those changes.
And then the REALTOR® comes in with their own set of criteria for pricing, which includes some of the same things that an appraiser will be reviewing when setting a value for your house. So, how does a REALTOR price homes?
What goes into pricing your home?
Location – some neighborhoods are more in demand than others, so your agent will take your location into account when helping you set a listing price
Condition – deferred maintenance and repairs play a big factor in the suggested price for a home
Sales prices of comparable properties
What’s a comparable property?
Similar location – if you live in a true subdivision, an appraiser will attempt to use only sales from your neighborhood. Going outside of the subdivision limits is only done if there have been no true comparable sales in the last 6 months.
Similar condition and updates – granite, new kitchens or baths, wood floors, fireplaces…these all add value, but if every other house in your neighborhood has the same amenities, don’t expect that your home will be worth significantly more.
Number of bedrooms and bathrooms – we don’t compare 3 bedroom, 2 bath homes with properties that have 5 bedrooms and 3 baths. It’s just not an apples to apples comparison, which is what the appraiser is looking for.
Living square footage – most agents will only use homes with a 10% +/- difference in square footage as comparables. Anything beyond that starts skewing price per square foot (which, by the way, an appraiser almost NEVER uses in determining value).
Similar parking – unless you have a 3 car garage in a neighborhood of carports, your parking situation is unlikely to make a big difference in pricing.
Extras such as a pool are only worth what buyers have proven they are willing to pay for them, which is much, much less than what you spent installing them, so please don’t assume that a $50,000 in-ground pool will equal a $50,000 increase in the sales price.
Need some help setting a price and selling your home?
We’ve got experts for just about every metro New Orleans neighborhood. Call us today at 504-327-5303.