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Home » Business And Finance Articles » How To Determine The Price Of Your Home

How To Determine The Price Of Your Home

Why is it that some homes sit on the market for a year while others sell like hot cakes? Frustrated sellers will blame a bad market, while a good real estate professional will tell you that many times, a slow sale is often attributed to the listing price.

If a home is overpriced, buyers will stay away. But, if the price is competitive with similar homes in the area and "shows" better than the competition, it will have a better chance of being sold quickly.

The secret is perfecting a technique that's as American as apple pie: comparative shopping.

Although comparing houses with different styles, square-footages and locations is challenging, real estate professionals still feel it's one of the best methods to use when determining a home's market value.

A responsible real estate agent will effectively evaluate a home's worth through a process known as Comparative Marketing Analysis (CMA). Taking a look at assets, such as a swimming pool, bigger than normal living spaces, a fantastic view, adjacent city parks and other attractions, the agent will begin to compare your home with similar properties, called "comparables," that have sold in the area within the last six months. Typically, the agent is able to recommend a realistic price range that will ensure you top dollar and a reasonably

However, factors such as the amount of time needed to sell your home can alter the agent's price recommendation dramatically.

Typically, people should check with real estate offices in the community to determine the typical duration that listings are on the market. Sales associates will explain that the marketing "norms" vary with prices and properties. Based on this criteria, the agent feels confident that he or she will be able to sell it for a price that both you and the buyer will be happy with. However, if you're under time constraints because of unexpected job changes or moving agreements you've made on another property, this will narrow your chances of selling the home for top dollar in the market.

Assuming you have sufficient time to market the home, here are a few small steps you and your agent can take to finding the right price for your property.

The best comparisons can be made with similar homes that have been sold within the last 45 days as opposed to the standard six months. Any longer and other factors, such as the economy, could cloud your view of how much your home is really worth.

Another good benchmark is to review the selling prices of homes that have just been sold and are pending closes. Most MLS services provide information on deals pending that most real estate agents should be able to shore with you.

A good rule of thumb before setting a price is to make 20 comparisons of comparable properties within a one-mile radius of your house. Once completed you can feel comfortable that the price you've picked is a good gauge of the home's worth and won't discourage qualified buyers.

Being open and honest about what you see as the home's greatest strengths and biggest weaknesses will also help an agent get a better feel for how to best evaluate (or assess) and market your home. Think of your home as if you were the buyer. If your home is listed at the right price, you're well on your way to a speedy and fruitful sale.

And here is another random article you might be interested in...

Get A Credit Card That Works For You

For most of us, hardly a week goes by without getting a credit card offer. If you are thinking of getting a new one, there are several key issues in choosing which is best for you.

They all advertise benefits. Which mix of benefits best fits your needs? That is the key. Let's discuss a few of the things you should be aware of before you do any applying.

What Will You Use The Card For?

This is the most important question to ask yourself. Your answer will help you decide just what type of card and what incentives will work best for your needs.

For example, if it is for business use, look for a card that offers cash back for business purchases or a membership to a discount buying club. Most companies offer a low introductory rate for a specified amount of time -- you need to know what the rate jumps to when that time has expired. It might work better for your business if you find a long-term, more moderate interest rate than having to change cards every few months to keep your interest rate in check.

For personal use, if you wil use it instead of cash and checks throughout the month, but plan to pay it off each month, know what the card's grace period is and what happens if you miss it. Pick a card that offers reward points even if you don't carry a monthly balance. This can be a great way to rack up the frequent flyer miles, as long as you're disciplined enough to use it this way.

Know The Interest Rate

Many card companies will offer an initial interest rate that is quite low, sometimes even 0%, for a designated time period. This rate usually applies to both transferred balances and new purchases. What happens when the introductory phase is over? Will the interest rate skyrocket? Will the interest rate be more moderate if you have a good payment history?

Look for hidden costs such as an annual fee or a cash advance fee. These are important to know so you can use your card to your best advantage.

Evaluate The Incentives

Many cards also offer a long list of incentives with their application offer. Although many of these are nice, usually you have to use your card a great deal to get them. This can become a trap -- buy more to save more. If you're going to use your card anyway, then you might as well have something to show for it. Look for cards that offer incentives that interest you, and that you would actually use.

Credit card selection is a cross between a candy store and a jungle. Make wise decisions and you'll get a sweet deal. Otherwise, beware -- you might get eaten alive.