How do you determine a home's selling price?

Question

We would like to sell our home. Our home was very recently appraised at $228,000 by a home appraiser. Do you normally list the price of your home higher than the appraised value? What price would be fair?

Answer 1

You need to get comparable home prices. That is you need to find out what similar homes in your neighborhood have been selling for. The appraised value is usually based on that. However, to get a good analysis you should talk to a real estate agent who is active in your area and would be able to adjust appropriately for condition and other factors. You should also consider the current market situation in your area. Much of the country is experiencing a market slow down, so prices are stagnant and even decreasing somewhat.

You can call a local real estate agency for a market analysis. This should be free and there should be no obligation to list. Try to make sure you get a knowledgeable and highly experienced agent. They will do the best job. If you need a good real estate agent in your area, let me know, I can make a recommendation. I am myself an agent in NJ and I know how to track down the best agents throughout the country.

Answer 2

If it was appraised in the last few months. The appraisal price is probably still pretty accurate. Do houses in your neighborhood sell quickly, or stay on the market for awhile. If your area is hot you could probally get full price, and still sell fairly quickly. If your area is slow moving, houses on market 3 months or more, If you want a quick sell be willing to take a little less. As far as initial pricing. I would not jump the price up too much, it will scare potential buyers away. If you ask just appraisal or just a little under you will get a quick sell it just matters how big of a hurry you are in. If not in a hurry ask a little higher , most people like to offer a little less.

Answer 3

What's the market value in your area? You were probably given a list of comparable sales with the appraisal. I'd take on at least $7,000 to the appraisal because people tend to offer a lesser price, unless you want to sell it right away, then ask for the $228,000 and be firm. Make sure your home is in tip top shape as well.

Answer 4

Very interesting to read the answers.

The value of any commodity is determined by an agreement between a ready willing and able buyer, and a ready willing and able seller agreeing on the terms and conditions of the purchase and sale. Which therefore is an agreement and meeting of the mind of the highest price (amongst other things) a buyer is willing to pay and the lowest price a seller is willing to sell.

Ther are 3 common methods realtors and appraisors will arrive at a value range for a property and the time and space here is to limited to explain them all in detail

The 3 are Comparative approach
Revenue approach and replacement approach

The one most of the received answer are focussing on is comparative, which is used often to do a single family home with common and similar features compared to other homes in a similar location and with similar services and adequate volume of recent sales. As stated earlier it is the meeting of the mind that sets value, not the wish of one or the other party, so in a comparitive method one would focuss on the sales and adjust the value of your property to reflect the value of your property to recently sold other comparable properties in your area.

The cost apprach reviews the cost of replacing your property and makes adjustments for age condition, funtionality, design issues etc.

The revenue approach uses the potential income of a property to establish value of a cashflow and compares it to the cost of buying a similar cashflow stream in another property.

The appraisal you have on the property may be anindication of value, but it depends why it was done, if it was done for financing, many agent will tell you that this may not reflec the sales market, and is likely higher than the market value.

If the appraisal was done for tax issues the reverse may be true.

In an active market an appraisal is only current for about a month and after than one should update the data, most quality agent can do this on their computer within a few hours.

Most appraissors use the information and sales reporting systems of your local mls service and are therefore always a bit behind witht ehtrends in the market as they are first noticed by the agents and it would be my recommondation to seek out the assistanc eof a top agent team in your area, don't worry about the highest appraised number, but concern your self more with how good a track record the agents you are considering have in your market to determine who is right to assist you

Good Luck

Answer 5

I would use a real estate broker or licensed Realtor in your area to discuss your questions with or handle the stress of selling your house for you.

Usually you will set your home at a higher value then the appraised value, but you don't want to go too high that it knocks your house off the block for interested people. This is why you need a professional that can handle your sale and set the fair market value of your house from their experiance.

Answer 6

You want to advertise with a higher value, about 10% should do. Not too much because you don't want to be out of the market. Offers usually come 10% under the asking price so you should offers in your appraised value.

Also check with and agent a do some CMAs (Comparative Market Analysis) Your agent can do this for free if he lists the property.

Answer 7

Yeah usually higher, although not too high, because then if the people that purchase it are taking out a loan, the bank will only loan enough money for the appraised value of the home...hope this helps...good luck! I would personally list it around 240k and see where it goes...you don't want to sell for less than it is worth obviously!

Answer 8

1) Recent sales of comparable properties in the immediate area. You should make certain they are in the same neighborhood. Too many people run comps over the entire zip code.

2) Modify by what is currently for sale in your neightborhood and at what price. If someone can find a better property cheaper, they won't look at yours. If everyone is overpriced by $20,000, though, you don't want to make that mistake and join the Legion of Not Selling. A large part of the game is how many willing buyers come look at your property! If a lower list price brings more prospects, a good realtor knows how to play them off.

3) If you're going to insist on selling FSBO, be prepared to wait a while. Especially in this market!

Answer 9

If you are selling it yourself, do what I did. I had 3 Realtors come and look at my house. I ACTED like I was going to sell it and after they all told me what they would list it for I called and said I was going to first try to sell it by myself. I took the average of the tree prices they suggested. They all were about the same. $8,000 apart on a $195,000 house. The Appraisal is ALWAYS more than market value. Hope this helps

Answer 10

Home appraisers look at the home. that is one. Look at the lot and yard and compare the selling price of house's in your neighborhood. CURB APPEAL is a major selling point of the house. Landscaping ups the value. If you want to raise the price. Do some landscaping.