If you need to sell your home, but it has lost some of its value since you first bought it, you’re facing a pricing puzzle. But when deciding on a fair market price that may be below what you really want, consider the costs of not selling by asking for more money than the market will bear and sitting on the market for months on end.
If your home sits on the market, waiting for a higher offer, you’ve got to figure in the costs of continuing your monthly mortgage payments, taxes, utilities, maintenance and insurance.
Compare the asking prices of similar homes to the actual sales prices, which are often determined more by the lenders than the buyers. If you’re asking more than your home’s current value, the required appraisal will show that fact, and the lender won’t approve the buyer’s loan, leaving you back at Square One.
Walk in the buyer’s shoes and do your homework. Go ahead and tour similar homes listed in your area. Compare their price and see how your home stacks up against the competition in terms of value and price. This should help your arrive at an asking price that will hopefully be close to your sales price.
Local inventory determines your price, too. Divide the number of homes currently on the market by the number of homes that sold in the previous month to determine the local “absorption rate”. Eight months of inventory yields a 12.5 percent likelihood of selling, so speak with your agent and price accordingly.
Contact the Kathy Henne Team RE/MAX FINEST by calling (937) 778-3961.