How Comparable Sales are Use to Price Your House
Comparable sales are one of the biggest weapons in the real estate agent’s arsenal that he uses to set the sale price of your house. It involves looking at the previously sold neighboring houses and drawing comparisons based on its features. Of course, the current market value tells you a lot about how much the house can be sold for but if you want to find out the sale price to the last dollar, then looking at comparable sales will give you a clear idea on how high you can go on your asking price.
The reason why this step of the home-selling process is best handled by a real estate agent is because they have been inside hundreds of houses. They know what features impress buyers and what they see as frivolous and a waste of money. So, if you are planning to go the FSBO route to save on the commission, know this that you might lose a winning deal.
How Comparable Sales Help In Setting the Asking Price
Your home for sale in Oakland County, Michigan is valued on many factors, which include:
Location: The closer the comparable sale is to your house, the better the chances are that it has the same layout.
Home Type: From the square footage to the construction material, home style including the number of rooms, basement and attic… everything is taken into account.
Upgrades: Any upgrades that you have made in the past year are included in the comparable sale. However, if these renovations do not match the basic requirements of the buyer, you might not see any ROI.
Date of Sale: When using comparable sales, make sure the house was sold within the 90-day window.
Sale Sweeteners: If the comparable sale offered sale sweeteners such as paying for the closing costs or low down payment, then you will have to lower the asking price of your house or offer the same benefits.
Insider Insights Allow Real Estate Agents to Settle on the Price
Subdivisions present a problem when selling your home for sale in Oakland County, Michigan because they are different than the comps. However, since the real estate agent has insider knowledge about the comps in your areas, they will be able to negotiate on the asking price with the buyer based on other factors such as land value and major repairs.
This way, even if the buyer comes back with a counteroffer, you will be able to show him the comps as proof that the house is in fact valued just right. Of course, at this point you can use sale sweeteners to entice the buyer. However, even this should be done keeping in mind that you are not giving away something that will cost you more.
In such cases, what you can do is offer home insurance or kitchen appliances for free. These big gestures will show the buyer that you are willing to offer something in return for the high asking price on the house.
They Pick the Right Home Listing Price
Say, there are about four comps in your neighborhood. Some of them were sold cheap and some of them were sold at a high price. At this step, the real estate agent evaluates each and every feature of the house from the quality of the paint to the durability of the roof and more to set the right asking price to the last dollar.
So now you know why having a real estate agent is so important when it comes to setting the asking price on your house. Looking for a real estate agent to help you put up your home for sale in Oakland County, Michigan? Visit my website Homes2MoveYou or you can reach me at 248-790-5594 for the right listing price.