The Importance of Pricing your Home Properly

01/30/2012

Home ProperlyWhen it comes to selling your house, there is one aspect that many people overlook; this is the aspect of proper price point for the home while it is on the market. One of the common misconceptions is that the price of the home should be based strictly on the homes listed value with the local Sayers office plus any profit which the home buyer needs to get out of the site. The truth of the matter is that this is not necessarily the case. There are many other factors, which go into proper pricing of the home that is for sale such as improvements that have been made to the home, market value of the neighborhood of the home sits in, and what is referred to in the industry as the perceived value of the home. All these factors and more go into setting a price point for your home, which will not only move it off the market quickly, but also afford you much more profit than you ever thought possible.

Upgrades that you have made can add to the potential price of the home both in terms of actual value as well as perceived value of the home. In many cases, the concept of perceived value can actually add more working room to the price point. Things such as hardwood floors, new windows, a deck, or new installation can add actual value to the home in terms of the amount that was invested to perform the upgrade. Perceived value covers things such as the installation of a hot tub, Jacuzzi bathtubs, advanced security systems, landscaping, and decorative features in the front and backyard. Perceived value upgrades entice the buyer to spend more on the home that they simply have to have because it is a dream house. For this reason, the investment made for a perceived value upgrade can generally be doubled when looking at its addition to the price point range of the house.

Another of the major factors which can go into setting the proper price point for your house is that of the season of the year when you’re attempting to sell. Research has shown that homes which sell during the spring and summer traditionally sell for anywhere from 20 to 40% more than those that sell during the fall and winter. You should also consider that the holiday season, as well as the vacation season, is not optimal time for you to attempt to sell your home at any price point. A good piece of ice is to take your home off the market for the last four weeks of summer and the last four to six weeks of winter.

The neighborhood that the home is in also makes a major difference to the amount of room that you have in regard to price point range for the home. When setting the price point for your home is a good idea to look at the market value of the houses within a half-mile square area around your property. Market value takes into account both the actual value as well as the perceived value of the home. This is the value that you should be interested in when you are pricing your home.

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