Choose your selling price
Determine the asking price
If you are not sure about the price formation of your property, there is nothing to worry about. We have a complete set of rules to help you calculate the right price. You should realize that it should be both attractive for potential buyers and high enough to cover your own costs of it.
The main rule in price formation is to be realistic.
From one side it is your home and it is precious to you, but you should also understand that it is just a house and be as objective as you can. You do have special feelings and emotions to your home as many important dates took place namely in your lovely house. In this situation you should think you are a potential buyer of your own house. You should start assessing your house as if the buyer sees it. Before considering the asking price you should take into consideration three conditions:
- A – Real estate market conditions
- B – Time limits
- C - The lowest asking price you would accept
A – Real estate market conditions
Compare your property with similar houses
If you completely have no idea of how much your house would cost you should look through the available listings and compare the houses with the same exterior and interior characteristics as your house. You should also take into consideration the location of your house and other property you compare with and orient on those that are in your area. You can also contact specialized appraisers so that they could determine the approximate cost of your property. Besides you can order a report from them to have the selling price grounded and set basing on current market conditions. After you have received the appraisal report you will have all details about your house as for example location, total living space, the number of bedrooms, the number of bathrooms, the year your home was built, the exterior properties, the size of the land-lot, type of garage if applicable, a pool or a fireplace if applicable, any renovations made for the last years, etc. Thus, if for example the price for the similar properties sold in your area was about $ 280,000 to $290,000, it is quite possible that your property would be assessed in this price range. Another issue affecting the price is the time-frame, i.e. what period of time you have to sell your house.
B - Time limits
When deciding on the time-frame you should also bear in mind time needed to close the sale. If you want to sell as quickly as possible you will have to lower up the price and accept that the selling price could be $280,000 and not $290,000. Though you can also compromise and agree with the buyer on the price of $285,000 that could be quite convenient for both of you. Note: You should give up all emotional and passionate feelings towards your property when selling it. As this property is deemed to be very important you can unintentionally higher the selling price too much and this would significantly affect the time of sale. Thus in case if the house is too much time at the real estate market it could earn the title of “house with problems” and potential buyers would just avoid it thinking that there are some major issues with this house. And if the house gets such reputation you will have to drop the selling price vastly to attract the buyers’ attention to consider your property for purchase.
C – The lowest asking price you would accept
After finishing the process of the asking price determining you will have to calculate if the remaining amount after all transactions related to home sale is sufficient for you. The following transactions related to property sale are:
After the calculation of all expenses you will receive the remaining amount from the sale. And you have to think whether it is acceptable for you or not. In case if this amount is too low, you may decide to postpone the sale of your house. It is widely known that even throughout one year period the prices at real estate market are jumping up and down. So you will have to wait a few months and see the fluctuations at the market.
- The next mortgage conditions. You should speak about them beforehand with the financial institution.
- Expenses for advertising. You may would like to advertise your property not only at our website but also in other available sources of information, like newspapers, Internet, etc .
- Notary fees. You should speak with your notary beforehand about his/her applicable fees.