When you are planning on selling a home in Omaha, or when selling real estate anywhere for that matter, one of the most important items to determine is the Listing Price. Before explaining how to find the right listing price, which we will cover in part two, we first need to discuss how NOT to arrive at your listing price.
The price you list your home at has nothing to do with the following:
How much you need from the sale. Whether you need a certain amount as a down payment on your next home, or to pay off your mortgage, or to pay off other debts is unrelated to what your home is worth.
What you paid for it. What you paid for a home has no relation to what it is now worth. Just because you bought it several years ago for x amount does not mean that is now worth more. In fact many sellers in Omaha that bought their homes between 2004 and 2006 are finding that their homes are now worth less than what they paid for them. The only time what you paid has any relevance is if you bought the house in the last three to six months.
What you owe on your mortgage. The balance due on your mortgage does not affect what your home is worth. If you refinanced your home recently to take equity out, then you could owe more than what your home is worth.
The amount of commission you are paying your agent. The commission you are paying your real estate agent only affects how much your proceeds from the sale will be, not the price your home will sell for.
The home's assessed value. The county assesses properties for the purpose of collecting taxes. The property assessment is based on a very broad and generalized view of property values. Assessed values in the Omaha area are often 20% higher or lower than actual market values.
The home's appraised value. An appraisal shows the maximum amount that a lender will loan on the property. 99% of the time the appraised value is more than what anyone will pay for the home. This is especially true if the purpose of the appraisal was for refinancing the home. A refinancing appraisal and a purchase appraisal are not the same thing.
Now that we have covered what not to consider when pricing a home in Omaha for sale, in part two we talk about what you and your real estate agent should consider when pricing your home.
Part two and three of this series are now available: