Due to a plethora of reasons, we all come to the conclusion eventually that it is time to sell. Of course, listing your house for sale will mean you have to come up with a realistic price, one not based on the fabulous memories you have there, but on the cold, hard facts. You will never be short of advice on how to price your house from relatives, friends and co-workers, but ultimately, the decision will rest with you. A recent MSN.com article discussed the three main alternatives you have on finding out how much your home is actually worth.

Correct pricing is much more than simply guessing until you get it right…getting it wrong can have nasty consequences. Overpricing will lead to a long selling time and a “stale” property, leaving potential buyers to wonder, “What is wrong with this place?” Underpricing, however, will leave you wishing you had priced your home just that little bit higher!

Before delving into the different steps you can take to value you house, it is important to understand what the main factors are that drive the price of your house:

Location, Location, Location: We have all heard it before, and that is because it is extremely important. Depending on how desirable the area you live in is will have a huge impact on the price of your property.

Your Home’s Condition: Another simple rule: the better maintained and more attractive your house is, the easier it will be to sell it at the price you want. Being labeled a “fixer-upper” will simply mean people will have to make room in their budget for the fixing!

Those Extras: Whether your home contains those extras that are “all the rage right now” will have a big impact on its appeal. Does it have a bathroom on each floor? Is there a porch? A swimming pool? A games room? All of these become important factors.

The Local Economy: Whether the local economy is doing well will usually affect whether people are moving into or out of your state, and more importantly, your area. Whether there are more houses than buyers, or more buyers than houses will really become an important factor influencing your house price.

Now that you know the factors, we can delve into different options you have available to you to help correctly price your home.

Home Pricing – D.I.Y. Style: This is by far the cheapest and quickest method of at least getting a good estimate for your home. All you need to do is search for home prices of homes that are comparable to yours. By comparable, we mean they should be in the same neighborhood, with approximate statistics, such as square footage, number of bathrooms, number of bedrooms, amenities, condition, etc. Either you can search through local listings in your newspaper, or you can use the Internet and search websites, such as HouseHunt.com.

Get a Competitive Market Analysis: Your next option is to use a real estate broker to get a competitive market analysis (CMA). A CMA is an estimate of your home’s value based on all the facts discussed earlier. This is normally a free service given by brokers on the hope that you will list your home with them. A CMA will involve a walk-through of your property by the agent, then a report will be produced giving you either a specific dollar figure or a price range. You will also see other properties similar to yours with their prices. Pay particular attention to those properties that have remain unsold – this will be your upper limit.

Bring in an Appraiser: Although this is usually something the buyer does toward the end of a transaction, it can also be something you do if you doubt the results of a CMA, if you are selling without an agent, or if you have a unique house without many others to which it can be compared. When selecting an appraiser, it is best to find one that is experienced in evaluating houses similar to yours and in the same area as yours. A proper appraisal should last somewhere between one and two hours for a small house, and two to three hours for a larger house.

Whichever method you choose, the end price will only be an estimate based on judgment. The key to getting the most accurate price is to use as many of the pertinent facts as possible, and to use sound judgment. However, be prepared to be flexible, as, despite your best efforts, the price you decide on may just be too high for the market, and you may have to rethink your price if you have trouble selling.



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