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Determining the best selling price for your home involves many different factors. A good Bucks County realtor will take those factors into consideration when determining the best asking price for your home. But as the seller, you should do a little research of your own so that you have a general idea of what you can expect. This will also help you determine how much you can spend on the purchase of your next home.
Estimating your home’s value
There are quite a few online home value estimators available that can give you an estimate, but it’s just that – an estimate. Your realtor can discuss with you the special features of your property that may increase or even decrease the likely going price of your home and where best to position yourself in the current market because, in reality, your home is only worth what someone else is willing and able to pay.
The estimator will request certain information from you to give you a number:
- Your location
- Home details such as square footage, bedrooms, bathrooms, age of home, age of roofing, siding, etc.
- External features such as a pool or deck
- Sale history of your home
- Property tax assessment
- Some estimators may ask for prices of homes in the area; other estimators can access that data
There are many factors not included in the estimator, such as the neighborhood, the season (in Bucks County, spring is the best time to sell a home, winter is the slowest time), how many other comparable homes are for sale in your area, and how strong the real estate market is.
You may have heard the terms “buyer’s market” and “seller’s market.” A buyer’s market means there are more houses than buyers, demand is lower, and sellers usually have to drop their desired price a little to attract a buyer. But if you’re in a seller’s market, there are more buyers than there are houses for sale, which benefits the sellers, who can price their houses as much as 10% higher than in a neutral market, where there is a reasonable balance between buyers and sellers.
There is sometimes a subset of the buyer’s or seller’s market, however, within certain price points. So while housing sales in general may be flat, certain houses, such as modest family homes or high-priced homes, may be experiencing a strong surge in interest, creating a seller’s market.
A good real estate agent will be able to create excitement around your property, regardless of the market pressures, by recommending quick, high-impact improvements and providing expert advice in prepping and staging your home, inside and out. Outside staging is called “curb appeal” and refers to how attractive your house is from the outside. You want your buyers to be drawn to your home from the outside to get them in the door.
Competitive Market Analysis
A competitive marketing analysis (CMA) is a more detailed process that real estate agents offer, using a multiple listing service (MLS) available only to realtors. The MLS is a database that lists properties currently and recently on the market and their features, which allows the agent to filter for houses comparable to yours. Based on this data, the MLS produces low, medium, and high price points to help the agent accurately price your home.
Your agent will also review recently sold homes to compare the asking price to the selling price. This can help the agent determine the price people are willing to pay for similar properties. Your agent can discuss with you these more accurate estimates, discuss any changes you want to make to your property that might increase the value and thus the sale price of your home, and recommend the best asking price.
Navigating the Appraisal
When you accept an offer and the buyer applies for a loan, the bank will send out an appraiser to determine if the price is in line with the home’s value. The appraiser is a neutral party who will evaluate your property by walking through and around the home, and then compare the price to those of similar properties. If the appraisal is lower than the offer, the bank will not give a loan for the full amount, which can complicate things.
Sometimes an appraiser is wrong, and your realtor should be your advocate to review the appraiser’s calculations. If the real estate market is appreciating quickly in your area, the appraiser’s data may not be current. The appraiser may also have made a simple mistake, or may not have taken into consideration certain improvements. Your agent can explain these discrepancies and request a second appraisal, taking these factors into consideration.
It is not common for an appraisal to come in low, but when that happens, you want your agent at your side to correct the appraisal or negotiate the next steps to sell your house at the best price.
Contact me today to help you sell your home. My eye for detail, pricing guidance, and expert negotiation skills will help you sell your home quickly at the highest price possible.
