Establishing the Price for Sale Homes by Owner
The real estate market is currently experiencing the trend of for sale homes by owner. It eliminates the role of a property dealer and invests all the powers into the owner. He prepares, displays, negotiates and sells the property on his own. It is a long process that includes many steps. One critical step among others is establishing the price of the house.
Establishing the Price:
For this purpose, you must examine your property, research the local market for similar looking houses and establish a price range for your real estate. It is easy, in a rising real estate market, to establish a baseline price for your property. You can determine the baseline by adding the most recent market price of your property with the cost of home improvements. It will give you the figure for the total appreciation cost of your house.
If the real estate market is currently experiencing an uneven foreclosure, then the market value of the neighboring properties is dragged down by as much as 30% due to the bank-owned real estate and short sales. It further complicates your estimation process.
To establish a fair market price of your property, you must follow the following simple steps:
You can easily find the local property price. These indexes are open to general public. Using this value, you can establish the baseline price for your property by seeing at the price range of the recently sold properties.
The automated valuation service is a home pricing tool that helps you establish the top-line value of your real estate.
You can also hire the services of a property appraiser for your house. He will establish the price for your property either in-person or on site. Choose the one that is familiar with the recent trends in your neighborhood. This appraisal takes into account few factors such as adding value for the recently sold similar properties and values for the unique features of the property and deducting the value for the worn condition of your property and for the features that house lack.
You must then calculate the selling expenses of your house. These include figures for transfer taxes, legal fees, marketing cost and cost for preparing the house for sale. Here’s where you can save the commission of the property agent. You can also take help from the pricing guide available online.
