Many different factors are taken into consideration when pricing a home to go on the real estate market. Going about pricing the house the proper way helps to get the maximum value when it finally hits the market. Before listing the house take the time to go over some of the factors that play a role in how to properly price the home. Not having the correct listing price can sometimes deter potential home buyers away from even taking a look at the property. Making sure the property is listed for the correct price is extremely important. The following are some of the major factors to know before ever pricing a house.
Appealing to the herd, or to a majority of potential home buyers is important when pricing the property. Real estate is a high stakes game, and a lot is on the line when purchasing a home. Buyers do not want to feel as if they are the only ones interested in the property. This has the potential to scare them off and make them feel that there is a valid reason as to why they should not be interested in the house. Pricing the house on the lower end of the assessed value of the property can help to stimulate traffic among many buyers and create a herd mentality.
Knowing the comparable properties in the neighborhood or area in which the house is located plays an important role as well. Real estate websites such as Zillow state that a home should be within 10 percent of the average sold price in your particular area. Taking the time and to review houses that have sold within the neighborhood in the previous three months can help indicate the price at which the house should be listed.
Square footage is a huge factor in pricing the property as well. Appraisers must always take the size of the home into consideration when determining the value of the house. When taking the time to look back at homes that have sold in the area, take notice of the square footage for each property. If there is a property with similar square footage then the listing price will be similar for your property.