Pricing Your Home To Sell
without underpricing it

Your home's worth can be a big factor in deciding if you should sell your home at all.  But don't make the mistake of making that decision based on anything except a bona fide appraisal.

The value of a home changes all the time.  In fact, what you bought it for a couple of years ago really has little to do with what it is worth right now.

In getting a home appraisal, you will be calling in a professional whose job it is to put a value on your home.  An appraisal can cost anywhere from several hundred dollars to several thousand, depending on the size and complexity of the home.  Regardless, it's always a good idea to get one.

You may be thinking, "But the buyer is going to get an appraisal on his own."  True, most home buyers that are using a mortgage to purchase your home, will have an appraisal done.  But knowing what your home is really worth is valuable information for you to have before you put it on the market...

Underpricing and Overpricing

If you put your home on the market for less than it is worth, it may sell quickly, but you could potentially lose lots of money.  On the other hand, if your home is priced too high, it may take a long time to sell or it may not sell at all...

The problem with overpricing (as we discussed earlier), is that buyers start assuming something's wrong with a home if they notice it's been on the market longer than other homes in the area.  They don't necessarily assume it's just overpriced; they may start making assumptions about its location or other features.

The Appraisal

In an appraisal, the professional will take into consideration all aspects of your home, including how old its HVAC (Heating, Ventilation, and Air Conditioning) systems are.  Then, your home will be compared to other homes in your area that have recently sold. 

There are formulas to help them determine the value of your home.  Within a matter of days, you will learn the true value of your home.

Knowledge is Power!

One of the greatest benefits to having an appraisal done, is that you learn what things are most cost effective to improve.  For example, your particular home may benefit best from a kitchen upgrade--even if it means a $30,000 home equity loan.  Or, you may learn that a small upgrade to one or more bathrooms may pay off in spades when you sell.

There are many benefits to using an appraisal when selling a home.  You can learn what things you can improve to maybe get a little more value out of your home.  And, you may be able to find the right price tag to put on your home.  Nearly every home owner believes his or her home is worth more than it actually is.  But, with an accurate appraisal, you can sell your home quickly and make money off of your investment.