A real estate property can be such a great investment for many people. Some homeowners deliberately look for and purchase properties for future investments. Others need to sell their properties when they have to move to a new house, transfer to another location, or simply want to generate income. Whatever the reasons are, selling your property entails critical thinking and decision-making.
One key factor to consider is understanding the fair market value of properties. The challenge, however, is that both buyers and sellers often view a home’s value differently. For this reason, it’s best to look at objective market data and discuss property pricing with real estate professionals because they have experiences in dealing with such situations.
Before going any further, below are four tips you should consider in pricing your real estate property.
- Consider the locality.
Your home pricing should be aligned with the market value in the area. It doesn’t necessarily depend on the property value in the national or city level, but it has to do with the market value in your neighbourhood. To get a glimpse of possible pricing for your home, consider visiting open houses in your locality. Check the pricing range in your location and see where your house fits.
- Obtain a CMA.
The next step you can take is to obtain a comparative market analysis (CMA) (Get a FREE comparative market analysis here). It’s a good idea to seek professional help to determine the best listing price for your property by contacting a local real estate agent. Ask your agent to prepare a CMA to provide you with up-to-date information on the houses sold in your market. These include homes sold within the last six to nine months, the price they sold for, and their overall condition and related amenities. With this guide and reference, you can ask your agent or a suggested price range for your home.
- Order an appraisal.
If the CMA doesn’t suffice, another viable solution is to order a professional appraisal. Though an appraisal will cost several hundred dollars as compared to a CMA, this will give you the actual value of your property. Know that banks typically require an appraisal when you buy a home. Generally, an appraisal compares your home to other properties based on the condition, location, lot size, and many other factors. After the appraisal order, you will obtain the precise value of your property.
- Have a negotiation.
When negotiating with potential buyers, you may inflate the price by a small percentage to allow for negotiating room, but you have to be realistic at the same time. Apart from the data on the actual property value, you have to consider the overall condition of your house. When negotiating, make sure that the price you set for your house matches your property’s condition.
Knowing the market value of properties and how much you’ll price your property can be quite tricky. However, follow the valuable tips mentioned above – consider the locality, obtain a CMA, order an appraisal, and negotiate with your prospective buyers. Understanding how to negotiate with your real estate agent on commissions can help you save more on your house.
By doing your research, working with a real estate professional, and dealing with your potential buyers, you’ll be able to arrive at reasonable pricing for your property. These steps can translate into a worthy property investment!
If you’re looking for a top-rated real estate agent in Langley to help you properly price your house, get in touch with us today! We’re happy to help.