How Comparable Sales are Use to Price Your House

How Comparable Sales are Use to Price Your House

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.

Pricing Your Home to Sell In Greater Oakland County

Pricing Your Home to Sell In Greater Oakland County

When it comes to pricing your home to sell in Greater Oakland County, you’ll find lots of “experts.” The neighbors may want you to set a high price, thinking it will make their homes more valuable. Your company may encourage you to set aPricing Your Home to Sell In Greater Oakland County lower price so the home will sell quickly and you can move to your new assignment. You might be thinking in terms of what you paid for your home, how much you’ve spent on it, or how much profit you want from it.

But who sets the price? When you put your house on the market in Greater Oakland County, you set the asking price. But it is the market that determines the selling price. If the asking price is set correctly, the house is likely to sell fairly quickly. If set too high, the house may languish on the market, unseen by the right buyers.

Pricing It Right

A correct asking price is crucial to a timely sale. That’s where we come in. But how do we know how to advise you on price?

  • First, we look at the prices brought by similar homes recently sold in the area, and compare their features to those in your home.
  • Then we survey the competition, seeing what homes are currently on the market, how they compare to yours and how long they have been up for sale.
  • Next we look at how the number of buyers compares to the supply of homes for sale.
  • We take stock of the direction of the market. Are prices rising or falling? Are homes selling quickly for the asking price?
  • Finally, we look at the incentives other sellers are offering, such as paying some closing costs, and what conveys with the property, like draperies or washer and dryer.

As you noticed, neither how much you paid for your home nor how much money you wish to profit from the sale affect the market value of your home.

Avoid “Testing The Market”

Many times, sellers are tempted to price their homes a little high in hopes of getting more money from the sale. But often the opposite happens, and they sell – after a long time on the market – at a price below what the home would have sold for if it had been priced correctly at first. This is because most buyers look only at homes they can afford.

  • If a home is overpriced, many potential buyers don’t bother to consider it because the asking price is above what they can afford to pay.
  • Buyers who do tour the overpriced home see that it doesn’t measure up to others in the same price range.
  • By pricing the home close to market value, on the other hand, the sellers make the most of their best opportunity to sell to the home’s true market during the highest traffic period – the first weeks after the new listing comes out. That’s when real estate agents call in the buyers they have been working with to see what’s new on the market.

MYTH:

“The best game plan is to price your home over market to give yourself room for negotiation if offers come in low.”

REALITY: Most homes sell within 5% of what similar neighborhood homes have recently brought. Pricing your home too high will actually scare buyers away. They’ll assume you are unrealistic and likely to be difficult to deal with. In addition, buyers who believe your home is out of their price range won’t even look at it.

The best way to deal with a low offer is by making a counteroffer or rejecting the contract outright. Having an experienced real estate agent in your corner will help you price your home to sell quickly, while netting you the best possible return.

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