Determining the price of your Westminster home can be tough because so many variables come into play. It’s also difficult as a home seller to be objective about the market value of your home. Sellers often tend to believe their home is worth more than other homes even when they are very similar. The important thing to remember when determining the price of your home is that you have to be realistic, even if this means reducing the price of your home.
Honesty is the Best Policy
It can be tempting to set the price of your home higher than it actually is and this is a perfectly acceptable pricing strategy. However, be prepared to reduce the price after a set amount of time if your home isn’t selling. I find that an honest and realistic price is what attracts more attention and buyers!
Sellers sometimes forget about the holding costs they are still paying on their home while it sits on the market. If you do all the calculations it often turns out that selling your home in two months at a lower price actually yields you higher net gain than selling after a year at a higher price due to the holding costs. So be honest with yourself about how much your holding costs are!
What Do You Need to Determine Price?
There are a few essentials to determining the price of your Westminster home: accurate market data, your holding costs, your opportunity costs, a good real estate agent, an unemotional perspective.
A great real estate agent will be able to give you a candid assessment on what they believe the price of your home is and why. They will be able to clearly explain to you why they believe this number is accurate. They should be backing up this information with accurate market data. This means your home is compared to other similar homes in the area to see how it measures up.
As mentioned before the expected holding costs should be factored in when determining the price of your home. Your real estate agent can tell you the average days on market. If you then multiply that by your monthly holding costs you can see how much money you will lose if your home stays on the market too long because the price is too high. Will the higher home price actually offset those holding costs?
Similarly, you might want to look at your opportunity costs. What do you plan to do with the money from the sale of your home? What could you be doing with the holding costs if they weren’t being spent on your home? Look at these numbers objectively and evaluate whether a higher home price is truly worth it.
Finally… an unemotional perspective
This one can be very difficult for sellers. This is your home! You have many amazing memories there and it holds much sentimental value. But don’t let this cloud your judgment on what the home is worth. Imagine you had never lived in this home and walked into it for the first time right now; what would you pay for it?
Find a good real estate agent and then listen to them. Believe them when they explain the market data to you. If the home price is lower than you expected have them explain exactly why. Real estate agents want the best for you, I promise!
If you can afford it, an appraisal by a certified appraiser might be another great way of seeing the price of your home. A completely unbiased third party is determining the price of your Westminster home and this is very useful information.
How Can I Help You?
I hope this article has shown you that I am a knowledgeable and very honest real estate agent who wants to help buyers and sellers. I want to provide my clients with interesting and up-to-date information so they can make informed decisions.
If you think that my expertise and positive attitude might be of service to you don’t hesitate to reach out and contact me!