How to Determine a Listing Price For Your Surprise, AZ Home
Home sales are brisk in Surprise, Arizona but it is also true that prices are falling in this market. While you do not want to price your home so high that buyers will be turned off, you certainly do not want to settle for less that a fair price. In times like these it is more important than ever to check out comparable asking and selling prices as well a taking an honest appraisal of your home.
Check the Current Market
Today it is a simple matter to visit the Internet to determine the asking price for comparable homes in the area. It is not enough simple to know the median list price because yours may not be like a median home. For example, the median list price for a home in Surprise is about $135,000 but actual homes range in asking price from as high as $5,000,000 to below $135,000. So, the median list price is not accurate enough info for you. You must search for homes online that are similar to yours in terms of bedrooms, bathrooms, square footage and location. That is how you will find the true asking price for comparable homes.
Check Recent Sales
But asking price and sale price are usually not the same. Since most homeowners know that prospective buyers like to negotiate and bargain, it is common practice to price a home a few percentage points higher than the actual expected selling price. For that reason, checking on actual home sales of comparable properties will give you a more accurate picture of your home's true value on the current market.
Check Current Market Conditions
Current market conditions will affect both the asking and sales price. In a stable market real estate prices do not fluctuate very much over time. However in a rising or a falling market prices can and often do change overnight. In a rising market it is common for a home seller to profit from a bidding war when several prospective buyers vie to buy the home with progressively higher offers. This delightful condition for sellers is known as a sellers market. In a falling market it is common for home sellers to be forced to lower the asking price, sometimes more than once to attract any bidders or offers at all. This fantastic condition for buyers and investors is known as a buyers market. In setting a price for your home, you must know what the current market conditions are and price your home accordingly.
Evaluate The Condition of Your Property
Homes in any area are rarely exactly alike. Some have made improvements to their homes while others have not. Still others may have deferred maintenance to such an extent that the value of the home is significantly lower. If you have made improvements to your home you can take a percentage of the cost of those improvements and add it to the basis of your home. However, you must also take into consideration the age and condition of the improvements. For example, a brand new modern pool would add more value than a 20-year-old pool that needs an overhaul. In fact, the older pool may even detract from the home's value rather than add to it.
Check With Your Agent
With all your data at hand check with your real estate agent who will go through the same process detailed above, that is consider current prices, recent sales, market conditions and the condition of the property to come up with a fair and reasonable selling price for your home.
About the Author:
Noel Markham, MA