One of the most challenging aspects of putting your house or property on the market is determining a fair asking price. The market should determine the price but emotion and perspective can play a large role in the property owner’s view of its value. The seller has a vested interest and has enjoyed the home or property. The seller says “the house has a great floor plan, great colors, the yard is perfect”. However, this is not necessarily what determines the value — the local housing market determines value. This is especially true in a buyers market and although the market is much better today than it was 2 or 3 years ago it’s still a buyer’s market in the Texas Hill Country.
Ask your real estate agent to prepare a Comparative Market Analysis (CMA) on your property. A CMA compares your home with similar properties that have sold within a specified period of time. You will see how long it’s taken to sell comparable homes in the high, mid, and low ranges. Drive by the homes to see the obvious differences. This will enable you to set a price that positions you to sell. If sales prices are dropping you may want to set your price lower than the competition. Other factors to consider when setting a price for your home:
- Economic conditions of your community
- The supply and demand ratio in your local housing market
- The location of your property (school districts and subdivisions)
- Your home’s special features (garage, pool, fireplace, in-law or guest quarters)
- The age and condition of your home
- Seasonal influences (the housing market may be stronger during certain times of the year).