One of the most important things to figure out when you’re trying to sell your home is how much to sell it for. Picking the right asking price will impact everything from the number and types of offers you get to the ultimate sale price of your home. It’s important to get it right. So how do you know how much to ask for it?
Look Around at Similar Homes
Ultimately, a home is only worth what someone else is willing to pay for it. One of the easiest ways to get a good feel for what someone might be willing to pay for your home is to look at what similar homes nearby are selling for. The more similar they are to your home, the better the comparison will be. Just make sure to only look at homes in your area. Location matters in real estate, and looking outside of your area won’t be nearly as helpful.
Get It Appraised
Another good way to get an idea of what your home’s value is is to get it appraised. An appraisal will take into consideration any renovations done, the home’s condition, size, and location. Remember, the location of your home plays a huge role in how much it’s worth. Incidentally, this is what mortgage lenders look at when deciding whether or not to lend money out. The closer your asking price is to its appraised value, the less likely a buyer will be to fall through because the lender didn’t think your home was worth it.
Consider the Assessed Value
Getting your home assessed for property taxes can be a real pain a lot of the time, but it can sure come in handy when it comes to selling your home. If you want another opinion on the worth of your home, look at the assessed value of your home. The county tax assessors can use things like the property’s appraised value, fair market value, home improvements, tax exemptions, and income generated by the property to determine its assessed value, and therefore the property taxes you’re responsible for. Given all the factors involved, it may not be the best figure to base your asking price on, but it’s another data point that has the potential to be useful.
If you want to have a successful experience selling your home, you need to make sure you ask the right amount for it. Get a feel for what a reasonable asking price would be by looking at similar homes nearby, getting it appraised, and taking the assessed value into account. You could even ask a real estate agent what they think it should sell for. Altogether, you should be able to get a good idea of what a fair asking price would be.
Check out this article on financial topics new home buyers need to know about!