Evaluating the right price for houses for sale in Howard County MD
What is my home worth – this is the first question that crosses the mind of all the people who put their houses for sale in Howard County MD. Coming up with the right answer to this question is important because your failure to pinpoint the right asking price can cause heavy financial losses, sometimes to the tune of thousands of dollars. It can also create other problems. For example, your home may sit unsold on the market for a long time while you are forced to bear all carrying costs such as utility bills, insurances and maintenance costs.
Here are some effective ways to figure out the magic number:
- Take advantage of a real estate agent’s expertize
An experienced agent or broker’s job is to help people buy and sell properties. They are very comfortable with answering the question – how much is my home worth? They get this question from prospective clients all the time, so they need to be on the top of their game in order to answer it correctly.
An agent will look at all the properties sold in your neighborhood in the past three to six months. He will study the asking price and purchase price of those properties, which are similar to your home in size, condition and location. These properties are called ‘comps’ (comparable homes). Real estate agents average the purchase price of these houses and use that figure as baseline for how much your home is worth.
- Study other houses for sales in Howard County MD, particularly in your neighborhood
Make sure to look at what other properties are listed for in your community. If your neighbor’s home is listed for $250,000 and you want to set the asking price at $350,000, you’d better be able to explain the reason for price difference to buyers.
Conclusion
You may be wondering why it is so important to price your home right when listing it for sale. Many sellers believe that they can price their houses higher than the comps and bring it down during negotiation with prospective buyers. But it is a wrong strategy.
Your home will end up sitting on the market for a long time if you price your home too high. Keep in mind that buyers start their search for a home with a specific budget in mind. You will not even get inquiries from buyers who you have priced out.
A property that goes unsold for an extended period of time (more than 30 days) often becomes stigmatized. Buyers will assume that there is something wrong with the property and for this reason it is not getting sold quickly.
On the other hand, pricing your home below market value in an attempt to get more offers can also backfire. You may have to accept a below market value. It will cost thousands of dollars.
Your best bet is to list your home close to what it’s really worth – its market value, based on good comps.