How to Price Your Home For Sale and Avoid Costly Asking Price Mistakes

Whether you plan on working with a real estateIf you are still feeling unsure about how to price
agent or are going to sell your house FSBO (foryour home for sale, you might want to consider
sale by owner), you may be concerned abouthaving a professional appraisal done. It will cost
how to price your home for sale. It's a decision$300 - $400. An appraiser will compare your
that can cost you a lot of money and waste a lothouse with 3 - 5 houses that have sold recently in
of time if not done correctly.your immediate area that are most like your
Here are four ways to get the information youhouse. Then they adjust your house's value up
need to evaluate your home's value and decideand down according to how your house compares
on your asking price.to the other houses.
1. ON-LINE "GUESSTIMATE" SITESA benefit of this method is being able to show
There are a million websites where you can get athe buyer the appraisal. They can be assured
free "guesstimate" on the value of your house.they are getting a fair deal when they buy your
I've compared the numbers on several of thehouse.
most popular ones against houses I've recently4. FIELD RESEARCH
sold or had appraised and found they wereBefore deciding on your asking price, I highly
anywhere from spot on to 40% off!recommend you do a little "field research". You
I think you should consider these sites as a placeneed to actually see some comparable houses
to start when selling your house, but you needthat have sold recently and some that are
definitely need more accurate information thancurrently for sale in your neighborhood. You need
they can provide.to check out your competition!
2. COMPARATIVE MARKET ANALYSISLook at houses that have sold recently. Take
If you are working with an agent, they can getyour reports and drive by the comparable houses
you a Comparative Market Analysis (CMA). Thisthat you found on your Internet searches or are
will give you a range of their best estimatedlisted on your CMA, valuation report, or appraisal.
prices, but there is no "magic formula". You stillLook at houses currently for sale. Next weekend,
should do some research yourself so you canget online or grab your local newspaper and make
intelligently analyze the information they will givea list of open houses in your area. Map them out
you. It will ultimately be up to you to decide onand go to as many as you can.
the actual price. I wouldn't recommend blindlyNow you've seen your competition. Rate your
accepting a number they push for either. I'vehouse on the following compared to other houses
seen agents be way off. And after all, whoeither sold or for sale in your price range. Take
knows your neighborhood better than you? Youinto account everything you see that might affect
know things that don't "show up on paper" thatyour opinion of your house's value. Does your
can affect house values.house rate favorably or negatively compared to
If you are selling your house yourself, you canothers houses in your area and price range on:
get a CMA free online (also called a home- Curb appeal
valuation or valuation report). However, this will- Location
alert agents that you are trying to sell your own- Condition
house and they will try to get you to list with- Features
them. There is no free lunch.- Landscaping
If you'd rather avoid the hassle of having agents- View
call you, you can buy a valuation report online forNow you know how to price your home for sale
around $30. You will receive ayou should have a much more realistic idea of
computer-generated opinion of your house'swhat your asking price should be. You can
anticipated selling price range.proceed with selling your own house with
3. APPRAISALconfidence knowing you are asking the right price.