By DAVID HOUCK
Qualifying Broker
Atomic Realty LLC

So you are thinking about selling your home, but how much should you ask for it? When selling your home, deciding on what price to ask is a mixture of data and art.

THE DATA: How much did other comparable or similar homes SELL for, after making price adjustments for their differing features, location and size?

USE THE DATA: Comparing other similar SOLD properties, a broker will usually supply you a range of values they believe your home will sell for. Surprisingly many clients in our market ignore the data saying things like “my friend says this house will easily sell for $50,000 over what the data indicates”. Maybe that is true but there is no evidence of that, other than the well-meaning friend’s biased opinion. Please pay attention to the data.

THE ART: By art, I refer to judging the home’s condition and its  “fit and finish”.

CONDITION: Every home always needs repairs, sometimes minor, sometimes major. The less repairs a home needs, generally the higher the price it sells for. This is why we suggest a pre inspection prior to marketing. A pre inspection allows you to identify and address most repair issues prior to marketing the home. The better the condition the more money a home will usually sell for.

DISCLOSE: While there is no requirement to do a pre inspection or to conduct repairs, Sellers do have a duty to disclose adverse material facts they know about. Sellers are not responsible for defects they do not know about and once a home is sold to a buyer any subsequent disclosed defects or unknown undisclosed defects are the buyer’s responsibility, NOT the seller’s. If a buyer still has concerns they should ask their broker about purchasing a home warranty to help cover other repairs after purchase.

“FIT AND FINISH” This is really a measure of the finishing touches of the house. For example, is the kitchen counter top granite the least expensive granite (builders grade) or a high end specialty granite?, or are the bathrooms modern or old and in need of remodeling? Their condition may be fine, “working as intended”, but they look as though they have come out of the fifties, and they may have. Generally the better the “fit and finish” the more money a home will usually sell for.

YOU DECIDE:

A broker may make a price suggestion, but remember it is your investment and the price you ultimately ask and accept is up to you, and only you. While it may be difficult, as your home was special to you, we suggest being as objective as you can. Generally, a Broker is trying to help you, but if you want to market your home higher than any data supports that is your decision, most of us will do so.

Please consider some of the possible consequences of overpricing your home:

1. If your home is seen as overpriced by buyers and other brokers, it may not get a contract on it quickly.
2. After a short period of time Buyers brokers know to make offers at less than your asking price, because it didn’t sell quickly at full price.
3. In the meantime you will find it stressful and more difficult to move forward with your life elsewhere.
4. On the other side of the coin, if your home has great fit and finish, has a great location and is in great condition you may receive multiple offers driving the price far beyond the listed price or the price that the data supports. The market will find the correct price.

Only you can make the decisions – As Brokers it is our job to provide you information and work towards meeting your goals.

David Houck is the Qualifying Broker for Atomic Realty, with 40 years’ experience, a BS in math and physics and a doctorate in law. For more details on these issues and free selling and buying tips see AtomicRealty.net.