To distinguish between the real estate asking price versus the actual selling price, you must start with comparable homes which are recently sold out. The more you will collect the data, the easier it will be to make reasonable offers.
💵 Asking Price vs. Selling Price
- The asking price is the price that the seller puts the property on the market for. It is the price that they hope to achieve for the sale of their property.
- The selling price is the price that the seller achieves for the sale of their property.
- Sellers are more likely to achieve a higher asking price for a property, if there is less on the market in that area for sale.
- Overpricing is the main reason good homes stay on the market. Owners believe their home is the exception to the best advice of a good agent. They price it based on what they want, or need to get, rather than what the current market indicates it is worth. Only over time, if it is still unsold, will they start to reduce the price to where it may attract an offer.
💰 Determine Your Home’s Value
A Comparative Market Analysis is a method used to determine accurate market values by comparing other similar properties that have recently sold in your area; what estate agents refer to as ‘comparables’. Analyzing what houses of a similar size as yours sold for over the last three to six months, as well as determining the average price per square meter the homes in your area are commanding, the CMA provides agents with a solid price base to use to determine a reasonable asking price for the property in question.
There are other factors that will affect the house valuation, which also needs to be taken into consideration. These include market demand and the condition of the property, its size and elevation, does it have a view, the state of the garden, the age and modernity of the kitchen and the bathrooms, various security features, as well as various cosmetic updates, such as the flooring, fireplaces, light fixtures, and whether the home has been painted with a fresh coat of paint.
🙋♂️ How Your Real Estate Agent Can Help
Typically, sellers will “list” their home with an agent and agree to pay a commission if the house is sold within a specified period. During the time the listing is in effect, the real estate agent will try to sell the property by advertising it and having open houses.
A real estate agent will help you find a home, but understand that the agent usually represents or works for the seller. Therefore, the agent has certain obligations to the seller and will relay any information that you provide. There are buyer’s agents who work directly for the buyer, and may be paid by the buyer, but most real estate agents work for the seller.
Real estate agents generally work on commission. Their fee is based on the purchase price and is paid by the seller. If another real estate agent finds the buyer, the two will share the commission.
The estate agent will help you obtain the correct selling price for your home. They will also assist in finding anything that can be repaired to help you achieve maximum selling price.
💲 Set the Right Price from the Beginning
To set the right price on a home, you should combine an objective evaluation of your property with a realistic assessment of market conditions.
In good markets and bad, you are more likely to benefit by determining a fair value and sticking close to it than you are by asking an unrealistic figure and waiting for buyer response to sift out the “right” price. And in a buyer’s market, setting the right price from the outset may be the only effective strategy.
You could set a fair price and then refuse to bargain. But that would deter all those people who hate to pay full price for anything and like to feel they’re “getting a deal.”
Better to leave a little room for negotiation by asking slightly more than you expect to get — 5% to 10% above the value determined by looking at recent sales of comparable properties could be a good starting point. If sales are brisk in your area, you might just end up getting top dollar.
Your real estate agent is the best source of information about the local community and real estate topics. Give Brian Birkel a call today at 402-706-7532 to learn more about local areas, discuss selling a house, or tour available homes for sale.