What is list price versus sales price?
The list price is what price your house is advertised for on the market, and it is a rough
estimate of what the seller wants to get for their property, while a sales price is what the
property eventually sells for. If you have not had many offers on your property after
several months, your listing price may be too high and so you will want to consider
What factors are important in selling my house?
You first need to price your property reasonably by using comparative sales data from
your local area. You can also pay for an appraisal to value the property. Next, you will
want to improve the property’s condition. First repair any superficial defects that might
turn off a prospective buyer. However, in a poor market, you might even want to do
more extensive repairs that need prompt attention, such as roof replacements. Also be
sure to check that your house is getting the proper market exposure it needs to sell for the
best price. Make sure it is listed in the local MLS and with online listing services. Check
that open houses, signs, and advertising are being taken care of by your listing agent.
Consider switching agents if your property is not getting the marketing it deserves.
When should I sell?
Depending on location, the real estate market generally starts to pick up in February for
the spring real estate market rush because most buyers like to move in the spring or
summer during their children’s school vacations. Late fall and early winter are usually
quite slow months, so that is usually not the best time to put your property on the market.
Also, real estate market prices tend to fluctuate in long term cycles, so it’s generally best
to sell near the top of a strong cycle, or “seller’s” market, rather than near the bottom of a
weak cycle or “buyer’s” market.
What is market value versus appraised value?
Market value is the price that a house is expected to bring based upon an informal
estimate done by your real estate agent known as a “comparative market analysis”. On
the other hand, appraised value is the written opinion of the price of a house given by a
certified appraiser. Such opinions or appraisals usually cost around $300.
Explain to me what are: list price, appraised value and sales price?
The list price is the price that you will advertise your property to the real estate market at,
and it is a rough guess of what price you want to receive for your property. Appraised
value is the written opinion of the value of a house given by a certified appraiser. A home
appraisal usually costs around $300, and it is based on the sale prices for similar
properties, the property’s condition, and other considerations. The sales price is the price
that the property eventually sells at, so it represents the amount that a qualified buyer
would pay for it.
What should I do if my house is still on the market after a year?
Price and condition are the two most important factors affecting a home’s sale. So, first
consider lowering your price and then look for cost-effective ways to improve its
condition. Also be sure that your home is getting exposure in the MLS, although some
agents do recommend pulling the house off the market for a while to wait for a slow
market to improve. More radical options might make sense if you have little to no equity
in the house and need to sell. One such strategy is known as a short sale where you find a
buyer at a price below what you owe the bank on your mortgage, and negotiate the
shortfall with the lender. Another option would be offering your lender the deed to your
house in lieu of foreclosure. Of course, it’s usually easier to just lower the price.
How do I set a price for my property?
You will need to assess the current market for properties similar to what you have to sell.
The market goes up as well as down, so you must choose your listing price after doing a
comparison with the local market. Your KNZ Brokers agent can prepare a Comparative
Market Analysis for your property, which, along with their advice based upon your
selling objectives, should give you all the information you will need to determine a fair
and competitive listing price. However, if you are comparing reports from different
agents, look for a consensus on price, but beware of an agent who gives a high value just
because they want your listing since this may result in a costly wait while you try to sell
an overpriced property.
How can I value my home?
A professional appraisal done by an independent and certified appraiser is one way to
value your home which generally costs around $ 300. Appraisers will take into account
your property’s size, position, quality, state of repair and comparable sales in its area.
Another, less formal valuation method is to ask a professional real estate agent like your
KNZ Brokers agent to prepare a Comparative Market Analysis for your property. Either
way, you will want to get a list of the prices of homes that have recently sold, as well as
those that are currently on the market. You can also do your own market research by
looking up recent house sales in the public records of your county or via some Internet
sites, but make sure that you are comparing your home with similar properties in terms of
size, construction quality and location.
How should I get my house ready to sell?
Besides making sure that the house is in saleable condition, you can easily do many
rather superficial things to make a good impression on a buyer. For example, you could:
Finally, if your house was built prior to 1978 and you think it might have lead paint
issues, consider doing an inspection and fixing the problem yourself, since a Federal
Law allows a buyer to ask for a lead inspection.
I need to find statistics on the real estate market. Where do I look?
Your KNZ Brokers agent can help you review the current housing market in detail. You
can also contact the Realtor’s Association in your state which will usually collect such
information from their local agents. For more general statistical information on the
housing market, you can read quarterly publications on house building and buying from
U.S. Housing Markets, which may be available for you to review at the builders’
association located in your area. If not, you can browse their Internet site or contact them
at (800) 755-6269 for more information. Another authoritative source is the U.S. Census
Bureau located in Washington, D.C. which you can call at (301) 763-2422 or browse its
Internet site. Finally, Chicago Title publishes a pamphlet entitled: "Who's Buying Homes
in America?" that you can get a copy of by writing to them at 171 North Clark St.,
Chicago, IL 60601.
Should I accept an offer below my asking price?
Low offers made below the listing or asking price are often rejected immediately by
sellers in a normal, rising market; however, in a buyer’s market, a motivated seller will
usually counteroffer if the low price is not acceptable to them right away. While you
would of course prefer to accept a full price offer or higher, before rejecting the offer,
you should take into account other considerations such as:
Does the low offer eliminate any contingencies that other, higher offers include,
such as depending upon the buyer's current home being sold? A low offer without
that condition may be more attractive than a full price offer with it, depending on
how motivated you are to sell.
Is the low offer made “as is” versus a higher offer that requires repairs to be
made? Some offers will require expensive, extensive and/or time-consuming
repairs to be made, so it may be better for you to accept a lower “as is” offer for
the house that does not require any repairs.
Does the buyer with the low offer have all cash for the purchase, as opposed to a
financed offer? If the low offer is made all in cash, and the buyer has therefore
waived the financing contingency, then it may be more certain to close and hence
more attractive than an offer that has yet to be financed.