Price Your Home Right – 6 Step Cheat Sheet

Dave Hanson
Published on May 4, 2016

Price Your Home Right – 6 Step Cheat Sheet

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I love it when I search a topic that I am about to write about and the top search articles are from Zillow, Bank.com, Readers Digest, HGTV or US News.  What are these companies, real estate agents or researchers and writers?  This is who we consider experts on real estate advice because Google finds them trustworthy and most of it is just regurgitated information and really not very helpful at all. Maybe some of it is good for general ideas but it’s too all-encompassing and not specific to your local market.  Isn’t specific or local market information what you’re after? Isn’t that more accurate and helpful to you?

Well, great job because you made it here and I am going to give you everything I have when I determine value on a property in the Seattle area and price your home right.  As a professional Seattle real estate agent in the Seattle market for well over 20 years, these are the things I use as criteria when it comes to pricing a home at the perfect price to encourage an offer.

  1. Stay in the same style – Price Your Home Right

Home styles have different sets of prices with them since some are more desirable to buyers than others.  For example, buyers do not tend to enjoy split level homes because of the entry, even though they are the most practical and economical of all the homes.  Still, they have a lower value than say, a 2 story home, because the style does not appeal to buyers as much.  Style means everything to a buyer because the outside is sold first and if you are pricing your home against a different style, you could be off in your value so make sure to follow this to price your home right.

Price Your Home Right

  1. Stay in the same neighborhood – Price Your Home Right

Crossing a major road or going into another neighborhood could affect the value in a drastic way. Even if it’s a short distance, sometimes crossing that boundary can make a big difference. For example, I-5 separates our city in half and the east side is a very different price than on the west.  Even though you might be in the same neighborhood, crossing over changes the price and some buyers might consider that a different neighborhood and perception of the buyer’s views on the areas can change the price of the home. Did you know there are many areas that people refer to as Ballard but they have their own neighborhood and pricing structures depending on location? Check out some of the Ballard Homes for Sale here and let me know if you have any questions on pricing in my home neighborhood of Ballard.

  1. Stay in the same square footage range – Price Your Home Right

Don’t go more than 200 square feet above or below the square footage of the subject property you are comparing.  We add dollars and subtract dollars because of square feet and if you go beyond the 200 mark, it breaks down the equation.  For example: an 800 square foot property is not anywhere the same category as a 2200 square foot home no matter what dollar figure you put on the price per square foot estimate to add to the price. Keep the square footage in the same range to price your home right.

  1. Stay in the same number of bedrooms – Price Your Home Right

When it comes to a home’s value more bedrooms can equal more money. If you compare a 2 bedroom to a 3 bedroom, with all other items remaining the same, the price of the 2 bedroom will be lower.  The opposite can occur also.  Comparing a 6 bedroom to a 3 bedroom might seem like the price should be a lot higher for the 6 but it does not compute to more money in all cases. It has a diminishing effect and becomes a dysfunctional home in a buyers eyes so stay in the same number of bedrooms and you will have great comparable values.

  1. Stay in the same condition – Price Your Home Right

Quality of the home means everything to a buyer and move in condition will give a higher price to a home than one that needs remodeling.  This is obvious but what about a home that has granite counters and one that does not? Does it mean it will get more money?  Maybe not as much as you might think.  Every home has pluses and minus and you need to keep an eye on those different upgrades.  Comparing one with more upgrades to yours will change a price greatly but an upgrade in your mind might not be the same to a buyer.  For example; a hot tub in Seattle is actually not an upgrade and will reduce the price of a home because homebuyers don’t want the expense and liability.  A freshly painted home might be an upgrade but to a buyer it could be just maintenance.  Be sure to stay within the same condition and all will be ok when it comes to pricing it correctly. Also, make sure to check out more on remodels and upgrade at 10 Profit Booster Tips to Sell Your Seattle home.

  1. Stay with the sold homes – Price Your Home Right

Sold homes are the gods of real estate pricing to help really price your home right.  They are what buyers are actually willing to pay.  That’s it!  Everything else is speculation and you can’t put your trust in speculation.  Active or listed properties are what sellers are hoping for and pending homes are what have encouraged a buyer to put in an offer but nothing is set in stone still.  That pending offer might fall through and the seller will have to put it back on the market and it probably won’t get the same price.  This is where agents and sellers miscalculate on value.  Sold homes are the only thing that matter and it is proof to buyers, realtors and appraisers; when you have proof it gives your price credibility.

There you have it.  These are the blueprints you need  to price your home correctly.  You don’t need a ‘zestimate’ or any ‘aggregators’ to determine your value, just need common sense and compare like kind with like kind and you will have a much more accurate price than any computer can give you.

If you need sold properties around your home, just go to my home value analysis page and we’ll send you comparable homes for your neighborhood. Also, if you want a professional opinion on the value (trust me, it is hard to price your own home) call us and we’ll be glad to help you out.

Other must know info about selling your home:

  1. Free Insider’s Guide to selling your home in Seattle
  2. 5 Top Tips for first-time home sellers
  3. Want help to price your home right? Find out what’s my home’s value?

 

Wondering how to go about selling your home in Seattle WA?  It’s important you understand how to price your home right in Seattle WA but also how to truly get top dollar for your home.  The information above should provide helpful to price your home right but if you haven’t hired a top real estate agent in Seattle WA yet to assist you with your home, contact me, and I’d love to discuss your real estate needs further!

 

Dave Hanson Home Team – Exceeding Expectations – 206.686.7525

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Price Your Home Right – 6 Step Cheat Sheet
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