10.10.22

How to Set a Smart Price for Your House

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A green house sitting on a block surrounded by fall-colored trees.
Consumers home loans

We’d love to help you with a mortgage or home equity line of credit.

Recent sales data to help ensure you don’t price your house too high or too low.

Determining an asking price for your house is no simple matter. Price it too low and you miss out on cash. Price it too high and buyers might overlook your house. Even if you lower the price later, your listing could appear stale and buyers might perceive your home as substandard. Correctly pricing your home from the start is the best way to get a fair price in a reasonable amount of time.

Start with comps

“Comps” is shorthand for comparable listings. You or your real estate agent will gather sales data on homes in your area that are similar to yours. Markets can and do change quickly, so focus on data that is no more than three months old.

The most valuable comp data comes from the sale of homes within a half-mile radius of your home. However, if you live in an area with few recent homes sales nearby you may need to look further out. Keep in mind that homes further way may not provide an apples-to-apples comparison. Similar homes in different locations can vary widely in value due to things like proximity to a lake or a busy road or the school district and more.

Remove emotion from the equation

Some homeowners make the mistake of overvaluing the upgrades they’ve made. While some home improvement projects will increase home’s value, it’s usually not by the full amount the homeowner spent. Be realistic about what others will perceive as valuable. Discover how much projects like kitchen and bathroom remodels gain across the country.

Remember markets are always changing

What buyers are willing to pay depends on many things, not least of which are interest rates. When rates are low, people can afford higher home prices. When rates go up — as we’ve seen in recent months due to rate increases by the Federal Reserve — buyers have to put more toward financing and therefore have less money to offer to sellers.

Other factors that can influence local home prices include:

  • Consumer confidence
  • Employment rates
  • Plans for a major employer to move into the area or leave
  • Supply of homes for sale, both existing and new construction
  • Speculative demand

If you’re selling your home and plan to buy a new one, be sure to check out our competitive rates for your next Consumers home mortgage.

Consumers helps more than 2,000 members finance land, first and second homes, and home improvement projects each year. We’d love to help you with a mortgage or home equity line of credit; contact us online or call us at 800-991-2221.

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Consumers home loans

We’d love to help you with a mortgage or home equity line of credit.

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