There are many things that determine the price of your house.
First, find out are you in a hot or cold market? In a hot market there are more buyers than sellers. In a cold market there are more sellers than buyers. A balanced market is likely in transition.
You can find out about your local market by searching the internet. For instance, in the Tampa Bay Area real estate market is considered is to be hot; although there micro-markets within it.
The market is determined by the time of year, and the mortgage rates, demographics, and supply and demand, sometimes even the house itself. Other factors are the desirability of the neighborhood and the school district. Your house might have special benefits that make it hot.
In cold market, such as the past recession, sellers often had to make concessions (closing cost, generous terms) in order to attract buyers. In a market where things are heating up, sellers are receiving multiple offers, even above their asking price. Buyers are snapping up houses as fast they become available. There are many factors that determine a property’s relative value.
The best way to determine average sales price is by looking at the average price of recently sold of similar houses (number of bedrooms, square feet) in your immediate locale. A lot has to do with the number inventory—number of houses available compared to the number of sold. Sites such as Trulia and Zillow provide general information; but, they are not accurate for determine the value of individual properties. Usually the numbers are skewed, because the data includes foreclosure sales, active MLS listings, and transactions between family members. You need to adjust for the condition and other features of your house.
One of the main reasons a house doesn’t sell is because it overpriced. Often, this is because a listing agent will propose a price that is too high—they paint a rosy picture in order to get the listing. The longer the house stays on the market the less desirable it becomes. After a while, the listing grows ‘stale’. Then, the seller ends out having to drop the price again and again. Buyers might suspect why. A seller who has moved on to a new place might run out of time money to pay for 2 houses. Buyers might sniff out the seller’s desperation and use it as an opportunity to make low offers.
It is essential that you determine the best starting out price. This might require the service of a real estate professional.
For a free consultation contact Better Place Florida at 813-405-0000
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