Setting the proper price is the most vital part in selling your house. Too low of a price is giving money away. Setting it too high may end up in a property that sits on the market a long time.
You need to get access to info on recently sold properties in your area. Now find the sold houses that are of the same age & updates to yours. Next lump houses in your subdivision into 3 groups as shown below. This is especially critical in old neighborhoods. I sell Houston Heights homes; a subdivision of 100 year old homes
A. The totally renovated home with updated baths, kitchen with granite, stainless appliances, etc.
B. The moderately renovated home or one that was “updated” years back. It needs some work again though.
C. The original “Grandma” house; practically untouched for dozens of years. A perfect home to re-do.
Be honest about how your upgrades compare with others. Your avocado appliances don’t really compare with contemporary appliances, now do they? Now, go thru the steps below:
1. Ensure the houses you are comparing are similarly updated (All in the same category above)
2. Use “Sold” properties from last 3-6 months, not asking price.
3. Compare to properties in same neighborhood
4. Use similar size ( /- 10%) properties (bigger homes are usually priced less per SF)
5. Same number of baths
6. Same number of garage spaces
7. Roughly the same lot size. Not as critical in suburban lots where land costs are not too high. Critical in older in Inner Loop areas like Houston’s Oak Forest with particularly high land costs
8. Hopefully at this point you have 5-6 or even more homes to compare to. This may give a idea of asking price. The next step is to add or subtract for amenities or problem, and so forth.
An in-ground pool or a garage apartment? Add for this. An expanded garage? Add again. Backs up to a commercial street? Oops – drop some from the asking price. Close to a great school? A plus! Directly across the way from a Highschool? Maybe not so good.
You get the idea. Forget your attachment to your property. Look at it as a purchaser. You may not care that high school kids race down your street; or that a used auto lot backs up to your house; or that your neighbour raises fighting roosters. Purchasers will care though. Any house will sell, but it’s got to be priced right. How much to adjust prices for strengths and weaknesses? A sharp Realtor will know. That is one of the many reasons to use a Realtor. This is not rocket science, nonetheless it does take thought and logic.
Rich Martin is a Houston Inner Loop Realtor. He specializes in old neighborhoods. He lives in the Heights and sells very old homes (at least very old for Houston) houses, like century old Woodland Heights homes, or mid century neighborhoods such as the ranch stle Oak Forest homes.