5 CRITERIA FOR PRICING A HOME
When you put
your home up for sale, one of the best ways to determine the asking price is to
look at comparable sales. There’s rarely a perfect apples-to-apples comparison,
so a pricing decision often relies on comparisons to several recent sales in
the area. Here are five criteria to look for in a sales comparison.
1. Location: Homes
in the same neighborhood typically follow the same market trends. Comparing
your home to another in the same neighborhood is a good start, but comparing it
to homes on the same street or block is even better.
2. Date
of sale: It varies by location, but housing markets can
see a ton of fluctuation in a short time period. It‘s best to use the most
recent sales data available.
3. Home
build: Look for homes with similar architectural
styles, numbers of bathrooms and bedrooms, square footage, and other basics.
4. Features
and upgrades: Remodeled bathrooms and kitchens can raise a
home’s price, and so can less flashy upgrades like a new roof or HVAC system.
Be sure to look for similar bells and whistles.
5. Sale
types: Homes that are sold as short sales or
foreclosures are often in distress or sold at a lower price than they’d receive
from a more typical sale. These homes are not as useful for comparisons.
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