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Deciding How Much to Ask for Your Home Print E-mail
By Crystal Guthrie

 When it comes time to sell your home, you certainly want to make sure you get a fair price. But, the hard part is determining just how much you should ask for your house when you put it up for sale. By setting the right price, you can get the house sold as quickly as possible while still receiving a price that is fair.



Determining the Market Value

The market value of a home is defined as being the amount that a buyer is willing to pay at a price the seller is willing to accept. In order to get a better idea of what exactly this amount is, your Realtor will need to complete a Competitive Market Analysis of the home.


When conducting a Competitive Market Analysis, the Realtor compares your home as it compares to other homes in your area. When doing this comparison, the Realtor will consider factors such as:


The square footage of the home
The amenities the home offers
The condition of the home
The age of the home
The size of the lot
The neighboring properties
The view from the home
The landscaping and exterior features


In order to get the best assessment of the home, it is important to tell the Realtor about any advantages or perks the home may have to offer. Think back to when you chose your current home. What stood out to you that made you decide to buy the home? Tell your agent about the factors that made you choose your home over the others in the area.


Regardless of what the Realtor quotes as the market value of your home, it is important to remember that it is not an appraisal. An appraisal is the amount a lender is willing to loan out in order to purchase your home. Although the two numbers should be similar, the appraisal may not be the same as the market value of your home.


The Effects of Over-Pricing

When you decide upon the price you want to ask for your home, you might purposely want to start off with a higher asking price. It is important to remember, however, that asking for too much for your home can make it take quite a bit longer to get your home sold. This can cost you more money in the long run since you will likely be taking extra steps and paying extra money to keep the home in the best condition possible.


At the same time, you are free to adjust the price you are asking for your home. Therefore, you might want to start off higher and then lower the price over time. Just keep in mind that getting a buyer for a home that is overpriced will be difficult to do. Or, you might sweeten the deal by offering to pay for the closing costs or by giving allowances for making certain repairs while still keeping the asking price on the higher end.

Crystal Guthrie is a top producing Realtor in the Austin real estate market. She specializes in the Costa Bella Austin Texas community..