Home Buying in Chambersburg>Question Details

Tlynn, Both Buyer and Seller in Chambersburg, PA

How do I price my home if there are no comps in the area? A few homesin the area have sold, but they need a lot of work and are not really comps.

Asked by Tlynn, Chambersburg, PA Fri Mar 4, 2011

Some houses in the neighborhood with similar square footage have sold, but that is where the similarities end. We have made several upgrades to our home. The homes that have sold (or that are currently on the market) are in need of updates. Should this be considered when determining a price for our home?

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Dear Tlynn,
As you mentioned there are homes that have sold in your community with similar sq. ft, therefore they would be considered comparables to an agent or an appraiser. You could a have an agent do a professional market evaluation and/or pay to have an appraisal done.Keep in mind these are just opinions however the most important opinion will be the buyer because with him, your home will not sell.
I find that when I do a market evaluation for a homeowner, it is difficult to find homes in exactly the same condition. There fore, adjustments should be made because of condition.It also depends on what upgrades you have made as to whether you will receive a good return. You never get a dollar for dollar amount back for the monies put into a home. Example: a buyer does not care whether you put top of the line new windows in your home versus a middle of the grade window because windows are windows.Obviously, your house should sell for more than the homes that were not in good condition but the question is how much more? So, price it at the top of your agents market evaluation and see how the market reacts. Your agent can provide feedback from agents as to the price and if it is determined that it is too high, then adjust the price accordingly. Good luck! Donna
1 vote Thank Flag Link Fri Mar 4, 2011
Pricing your property correctly is crucial. You want to sell your property in a timely manner at the highest price possible. Current market conditions determine the value.
Pricing too high or too low can cost you time and money. Realistic pricing will achieve a maximum sale price in a reasonable amount of time.
Work with an experienced Real Estate Agent who will help determine the price and develop the best strategy to sell your home.
0 votes Thank Flag Link Fri Mar 4, 2011
Upgrades certainly add to the value of your home, just not dollar for dollar. And, some upgrades carry more appeal to buyers than others. The pricing issue is always the most difficult thing in this market. Price too high, and your home will sit. But if you are truly motivated to sell, having a pricing plan can help you achieve your goal. If you really want an independent view of your home value, hire an appraiser. Otherwise, ask three realtors to provide you with a Comparative Market Analysis. It's a service we provide as realtors. This will give you a range to consider when pricing your home.
0 votes Thank Flag Link Fri Mar 4, 2011
Tlynn,

The best thing to do when pricing your home is to look at your house through the eyes of a potential buyer. Decide what type of homes a potential buyer would look at in addition to your home. Spend some time comparing those homes to yours, and make sure yours stands out as the best value. I hope this helps. I would be happy to help with some simmilar homes that a buyer might consider simmilar to your. I can be reached at 888-762-1554 or james.stoneham@remax.net
0 votes Thank Flag Link Fri Mar 4, 2011
First of all, talk to a Realtor who is familiar with your area and who can do a CMA (comparative market analysis). Unfortunately, you really need to use the comps that are similar in SF and # of bedrooms & bathrooms. Yes, you may have upgrades that the other homes con't have, but an appraiser really isn't going to factor that in too much. The biggest mistake sellers make is pricing their home based on what they "need" to get out of it, or what they put into it. It doesn't work that way.

If there really aren't any good "apples to apples" comps, then you may need to look at other neighborhoods close by that are similar to yours. And...be sure to look at active listings (which will be your competition)....AND....a REALTOR will be able to find listings that are withdrawn or expired. (Listings that never sold for whatever reason). If they see a listing that would have been a good comp, and was on the market for 200 days and never sold, that will give you an idea that it was priced too high. Good luck!
Web Reference: http://www.sallygrenier.com
0 votes Thank Flag Link Fri Mar 4, 2011
Tough one. You can always interview/hire a licensed appraiser to help you, generally for short money in the grand scheme of things. Being "big boy or best-boy on the block" is not a great position to be in when trying to get top dollar, as unfortunately your neighborhood does impact the selling price of your home (as do short sales / foreclosures, if any in your area).
0 votes Thank Flag Link Fri Mar 4, 2011
Sometimes you may have to go outside your neighborhood to get guidance. In these situations - you can start your listing period priced high, with systematic reductions until you start getting more traffic.

In some cases - it may make sense to get a formal appraisal to determine value - and use the county assessment as well to determine what it is worth.

Gerry Dunn
Associate Broker
Serving Maryland, D.C and Northern Virginia
0 votes Thank Flag Link Fri Mar 4, 2011
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