Tips on Pricing Your Home

Assessor Offices

Iowa

Illinois - Quad Cities Area

Indiana - Bloomington Area

Pricing is the single most important factor in selling your home.  Pricing is all about supply and demand, which is why it’s important to take a hard look at what similar houses in your neighborhood are selling for.  You don’t want to overprice your house as it will lose its freshness after a couple of weeks and interest will wane.  Most home sellers worry that pricing too low will result in them not getting the homes full worth, but in actuality homes priced below market value often receive multiple offers, which will drive up the price.

When looking at comparable properties, you should generally focus on those within a 1/2 mile radius and within the same neighborhood.  Often major streets form dividing lines in which a similar house on one side of the street will be worth much more than the house on the other side.  Compare similar square footage, age of the home and number of beds and baths.

Most county tax assessor sites have the ability to search for comparable properties in the area that have recently sold.  You should limit your search to properties that have sold within the last 3 months as home prices will fluctuate greatly within a year.

It is also a good idea to hire a real estate appraiser.  The cost of a third party professional opinion is money well spent, it is an accurate assessment of the market value of your home and excludes the emotion and wishful thinking of the home seller.  Also, the appraisal can be a valuable marketing tool when buyers begin to question the sales price on the home.  Buyers are aware; they have been looking and generally know what a property is worth.  Buyers will not make an offer on an overpriced home. An appraisal takes the guesswork out of it for everyone.

Overpricing means you will spend time, money and effort and get nothing for it... except discouraged.  It’s a given that your home will sit there, unsold, all because you did not establish a fair market price.  Don’t forget that selling your own home gives you a tremendous pricing advantage.

More than likely the homes the appraiser used as comparables, and even the ones you have investigated, probably involved the costs of a real estate agent.  In other words, even though a house sold for $200,000, the home seller netted $10,000 to $14,000 less because real estate commissions were paid.  You can now price your appraised $200,000 home for $195,000, and probably sell it faster.  More importantly, you'll walk away from the closing with more money because of the competitive price.

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