When deciding how to price your home in today’s real-estate market, give weight to pending sales rather than asking prices of active properties or those that closed long ago.
Creating value is the key to competitive selling. A seller’s objective should be to price his home so that it is considered by buyers to be within the top two or three values in that price range. If the market is slow, it needs to be the best home value available in that price range. In the end, the market will determine the final selling price, not necessarily the seller’s foremost desires.
Real estate industry standards suggest that if you have not received an offer after eight to ten showings, a price adjustment is probably necessary and should be seriously considered, since this usually means that the asking price is higher than buyers in that price range are willing to pay.
Different styles of homes demand different ranges of price. A cape does not usually realize the same price as a hi-ranch, and a split does not realize the same price as a colonial. When comparing your home to others, either on the market or already closed, do not forget to take into consideration the style of home that you have as opposed to the style of home to which you are comparing it.
Square footage of a house must always be taken into consideration. In comparing your house to others, the living square footage of the house must be calculated. Living square footage is the square footage of actual useable living space in your home, such as the living room, dining room, kitchen, bedrooms, den, etc. A basement, even a finished one, as well as an attic or garage space, does not count as living space, and neither does a deck or enclosed porch. When homes are appraised for a mortgage by the bank, the appraiser will always adjust for livable square footage when comparing your home to other closed homes. Look into comparing the square footage of your house to other similar closed home sales before you price your home so that your asking price will reflect the going market rate.
Using this guide in arriving at the asking price for your home will make your home more competitively priced and help you reach your goal of getting the best price possible in this real-estate market.
Anessa Cohen lives in Cedarhurst and is a licensed real estate broker (Anessa V Cohen Realty) and a licensed N.Y.S. loan officer (FM Home Loans) with over 20 years of experience offering full service residential, commercial, and management real estate services as well as mortgage services. She can be reached at 516-569-5007 or via her website, www.AVCrealty.com. Readers are encouraged to send questions or comments to anessa@AVCrealty.com.