Pricing your home for sale is not the easiest process despite appearances. When you look at houses for sale already, you see an asking price that looks fairly similar to the asking prices of other homes for sale in the same area. But the way the brokers for those houses came up with the exact price requires looking at more than what everyone else is doing.
Market Analysis Is Only Part of It
A major part of pricing a home for sale is the comparative market analysis. This is what you'd expect it to be: an analysis of which homes in the area are for sale, are pending sale, have sold, and have not sold at all. Canceled or withdrawn sales are also often included. The analysis helps the broker see which prices tend to move quickly and which ones result in problems for the seller, along with finding the right price for the specific type of home being sold. (In other words, if you have a two-bedroom house, the broker can look specifically at the prices of other two bedrooms in the area, along with the general sales trends for all houses.)
Upgrades (or the Lack Thereof)
Once the CMA is ready and the broker has a general idea of a price range, the condition of your house becomes the next feature to look at. An older house that needs a lot of plumbing and wiring upgrades is not going to command as high a price as a house that's been upgraded. Even if the house is fine, the yard condition and general street condition also affect the price. The broker needs to weigh all of these factors to narrow down potential home values for your property.
Disclosures and Unwelcome Issues
Also affecting the price will be extenuating circumstances that you have to disclose. Some states require that sellers let buyers know about deaths or crimes that occurred in the house, for example, or maybe the house was used for an exterior in a movie and gets the occasional photographer standing outside. While some buyers might not be bothered by the news, others may not want to deal with it, and that affects your sale chances (and lowers your potential asking price).
A real estate broker can walk you through all the steps they took to reach the asking price that they're suggesting. If you have additional questions about why they reached the decision that they did, they can discuss potential changes with you before you officially place your house on the market.
Learn more about real estate brokerage today.