One of the most important factors, if not the key factor, for a quick home sale is proper pricing. Price your home too high and you'll generate very little to no interest. Price your home below what buyers are willing to pay and the final sale price might be much less than what you could have made if the home had been properly priced from the onset.
When deciding upon a listing price, your Realtor® can advise you in making this very important decision. An experienced Realtor® will look at two primary factors when coming up with a range to price your home. These are sales in the area and market conditions.
1. Sales in the Area
Realtors® are able to research what homes have sold in your area along with their list prices and final sales prices. This research gives them an idea of what buyers might be willing to pay for your property. These statistics will not only show sales price but also how long each home was on the market before it sold, square footage and features of each home.
Your Realtor® will compare your home to others that have like features, including those with similar updates and homes that are of comparable square footage.
•¨ Comparable Homes
The first thing that must be done is establish which homes are comparable to yours. To do this your Realtors® will review the homes that have sold in your subdivision. For example if you live in Millard Heights it would not be reasonable to compare your home to Millard Highlands. Even the though the two subdivisions are close together they include homes of entirely different styles, sizes, and quality. From there the homes will be narrowed down by the type of floor plan (split entry, tri-level, etc.). Then filtering the homes based on the number of bedrooms, bathrooms, garage spaces, and square footage will yield the most comparable properties.
•¨ Comparable Condition and Features
When looking at the pricing on homes which are your direct competition, it is important to make sure your home is compared to others with similar features. For older homes it is important to examine the condition and updates of the subject property in comparison to surrounding properties. In some areas of Omaha, such as Country Club and Dundee, there are many homes that have been completely updated while others have not changed since they were built. Features are also important to scrutinize. In Regency many homes have in-ground pools. Obviously it would not be good judgment to establish the price of a home without a pool by looking at the price of a home with a pool.
•¨ Price Per Square Footage
The price per square footage is determined by taking the asking price and then dividing the price per the total square footage of the home. This calculation will result in a number which a Realtor® can compare to neighborhood sales. This final number is compared to other homes that have recently sold in the area, giving you and the Realtor® a certain amount of confidence that this price per square foot is a reasonable number.
2. Market Conditions
Are you living in a hot real estate market? Or are you living in an area where sales are slow? Market conditions are affected by unemployment and the overall economy. Even within a neighborhood the market is affected by the number of foreclosures in the subdivision, the number of rental properties, and local businesses. For example with the development of the Aksarben business district homes in the area have been in demand despite the slow overall market. Depending on your area's market conditions, you may be able to list your home for more than you think in a hot market. You may also need to list the house a bit lower than your expectations in a slow market, especially if you want to make a quick sale.
The importance of properly pricing your home cannot be underestimated. This is the time when the expertise and industry resources of a Realtor® are invaluable. If you have found a Realtor® that you trust, trust also that they know the market, together you can formulate a fair price that will get your house sold as soon as possible.
Troy Trumm - Alliance Real Estate, Omaha, NE
Consumer Reports on Omaha Real Estate
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