How much is my home worth?

You have decided to sell your home and now the big question is “How much do I ask?”. To determine this there are a number of factors to consider. David M. Brown has written an excellent article on this topic at azcentral.com. Here is an excerpt from this article.

A variety of factors come into play as you consider how much to ask for your home.

Your house is just sparkling for a sale.

Closets are cleaned, walls decluttered and windows Windexed. Overall, your home is depersonalized, readied for new personalities. No odors emanate, foul or too perfumed, as if mildew or the like is being masked.

Outside, the yard is clean, weeded, with some floral and trees well pruned. And, you’ve selected an experienced, aggressive real-estate agent who will work hard for you, including savvy marketing to set your place apart, such as eye-catching fliers, engaging professional photography and even creating a virtual tour to welcome those growing Web guests in.

Now, how much should I sell my home for?

“Determining a list price is a collaborative effort between the seller and the listing real-estate agent,” said Theresa Jensen, a Realtor and 5 Star Award Winner with West USA Realty.

“And, price is not determined by simply looking at what your neighbor sold their house for,” said business associate Jennifer Moore, also a Realtor with West USA Realty.

Factors in play

Consider many factors.

Start with recent sales, especially those in your immediate neighborhood that have closed within the past six months, although an appraiser will consider other homes within a mile- or two-mile radius if necessary for a realistic estimate.

“A Realtor will also be able to tell you the average days on the market for homes in the area, another piece of the equation when pricing your home,” Jensen said. “The longer it sits on the market, the more it may cost you.”

An attainable goal: Sell it, at an acceptable price to you, in 30 days.

Amenities

Next, compare features and amenities. Certain home features will factor into the price as well.

“If your home does not have a pool and a recent comparable home does, with everything else the same, your home potentially would sell for less,” Moore said. “And to complicate things, that pool may bring more money in the summer than in the winter.”

Factor in other upgrades such as tile or wood floors, non-laminate countertops, fireplaces, crown molding and an upgraded kitchen –– the most important room in your home.

Condition

How about condition? Is your home move-in ready?

“If the home has fresh paint, new appliances, cleaned carpet and cabinets that are in good shape, it is most likely going to command a higher price than a home that requires repairs and updating,” Jensen said.

Potential buyers

Consider your potential buyer: first time, FHA or conventional loan buyer or investor?  Should you do repairs or sell your house “as is”?

“Typically a first-time home buyer is going to utilize FHA financing, require closing-cost assistance and not have a lot of money to do repairs,” Moore said.

What’s more, your price cannot exceed FHA purchasing guidelines, now $271,050 for a single home in Maricopa County.

FHA homebuyers also have more loan requirements regarding condition. For instance, a home must be considered habitable. If your home has holes in the walls, broken windows or missing toilets, it cannot be financed with a FHA loan, and you lose a large buyer pool.

Need for repairs

You might consider contributing to closing costs to attract investors who won’t require repairs, although this will affect profitability.

But, if your home needs repairs, you might want to sell the home as is to attract investors who won’t require repair or closing-costs assistance. So, your potential range of buyers will influence your list price and the purchase price.

The seller and the buyer agree to a purchase price, with the consent of the bank financing the loan, if that is the case.

“The seller needs to look at how much their current mortgage payoff is, the amount of seller concessions requested, whether or not the buyer is asking for other fees to be paid such as a home warranty, HOA transfer fees or capital improvement fees,” Jensen said.

Read the rest of the article here

The best advice is to find a realtor you can trust. We have a proven track record of providing our clients with excellent customer service. We would love to help you with the sale of your home. You may contact us here:

Northern Arizona Properties