When pricing a home, you should be within about 10% of the average sold price of other homes in your neighborhood. Appraisers want to see comparable sales so that your home can be valued at its asking price. Pricing your home for sale may be one of the most complex yet important selling points you can possibly make. There are 10 things to know about the cost of your home and how to price it.
#1. Look at comparables.
It's important to look at all the comparable properties actually sold within the last three months. This is not necessarily the homes currently on the market, but those that have sold. Look up similar properties in size, the same number of bedrooms and bathrooms, lot size, and within your neighborhood if possible.
#2. Compare the size.
Appraisers will look at the square footage when determining the home's value. It's important to know your homes square footage so that you can look up comparable properties to find the right price as well.
#3. How your price shows up in the searches.
Most real estate websites, including my own, divide price listings in certain increments such as $150,000-$200,000 and so on. Most real estate agents will suggest not using an odd number so that you fall within the appropriate price range.
#4. Understand what appraisers look for.
Appraisers look at the condition of the home, the age, the size, the number of bedrooms and bathrooms, the lot size, and the location. They will also make note of any additional features such as a great view, home improvements, and anything that might stand out among comparable properties.
Pro Tip - "Talk to your appraiser. They may or may not ask if you've done any upgrades so it's important to point out anything you think might increase the value. You know your home best." - Mary Pong - Bellevue real estate expert.
#5. Brush up on what you can improve.
Try to boost the appraisal if you can increase the value of the home by $500. Curb appeal is a great way to boost the appraisal in an increment of at least $500 or more. Painting the house, a new front door, and fixing up kitchen appliances or updates can really add to the value of the home.
#6. Understand the return on any updates or remodeling projects.
A remodeling project is not going to give you an exact dollar for dollar return on your home so be aware of this when considering certain projects. Ask your real estate agent about any specifics that you should focus on in order to improve the value and attract specific buyers.
#7. Get a different appraisal.
It's okay to so that you don't agree with the final report. If there's a big difference between the agreed to selling price and the appraised value, you might talk to the appraiser or ask for a different appraisal. You may have to pay for it but it could be worth it.
Of course there's not much you can do about the location but, if you have a home in a great neighborhood with excellent schools, close to a Trader Joe's or Starbucks, it can add to the value of your home so it's important to make a note of this for potential buyers and the appraiser.
#9. The inspection can alter the price.
A negative report can be an issue to buyers this there are some serious problems that need to be corrected before final approval. This can definitely affect the price so it's important to cover all of your bases and maybe even consider having a preinspection before listing.
#10. Closing costs.
There may be additional closing costs so it's important to build this into your overall budget for selling your home.
These are just some of the costs and pricing to remember when pricing and selling your Portland home. For more specifics on your home or for answers to any of your questions on listing and selling or even buying, give us a call at any time.