What is the asking price for a house?
How to Set the Asking Price on Your Home
It’s quite an art to determine the asking price of a home you’re selling. If you price too high, you may have fewer interested buyers and the home may stay on the market longer. Here are some steps you can take to determine the asking price.
Consult a listing agent
A listing agent, also called a selling agent, is a real estate professional who represents the seller in a real estate transaction. Your listing agent has access to market data and real estate experience, so you should seek their professional advice when setting the asking price.
Get an appraisal of your home
When appraising a home, a professional appraiser will determine the fair market value of your home. Appraisers determine fair market value based on the age and condition of the home, any improvements you have made to the property, and how it compares to similar properties in the area.
Since an appraisal is an unbiased look at your home, it can be a useful factor in determining the asking price when you’re about to sell.
Assess current market conditions
Current real estate market conditions can also help determine the asking price of your property. For example, if the economy is strong and there is strong demand from potential buyers, you may be able to set a higher asking price.
Review real estate comps
Real estate comps are recently sold homes that are similar to the property you are trying to sell. Seeing how much comparable properties in your area have recently sold for can help you decide what price to sell for your home at the time of sale.
Complete home improvements and renovations
Potential buyers want to buy a home that is as ready to move in as possible. So if you have unfinished home improvement projects, finishing them can increase the value of your home.
Additional home improvements can also help increase the asking price on your property. For example, if your home is mostly carpeted and you replace them with hardwood floors, it will increase the value of your home.
Prepare to negotiate
Depending on market conditions, you should be prepared for potential buyers to negotiate the asking price of the home. The best way to prepare for the negotiation process is to work with an excellent real estate agent. An experienced listing agent will recognize a good offer when they see one and can recommend when to ask for more money.