Some home buying, selling tips; maximize your value

One of the most important factors in selling your home is the sales price. After all, you want to maximize your return.

Let’s say your family has grown larger, along with your earnings, and you want to move up. You’ve been waiting for that special piece of property to appear on the market — and, at last, it has. On the other hand, it might be the time to scale down a bit. The kids have flown the nest, and you want to invest some of your equity into a fund for the future. Whatever your reasons, you have high hopes. Here’s how to find out what your house may be worth.

Comparative Pricing a Tool

Value is a relative term. One owner’s quaint little cottage may be another’s money pit. Obviously then, you need some basis of objectivity — and you can find it by comparing your house against other houses that are for sale in your neighborhood. Find out their sale prices and then compare them in size to yours. Specifically, you should relate the number of bedrooms and baths against yours, and then factor in other distinctions such as the overall condition of each house, the size and appeal of the lots, architectural style, and any extra amenities that might add to desirability.

You can also make this an easy task by turning to your real estate agent for a more comprehensive method of house comparison. Your agent will have access via the Multiple Listing Service (MLS), which lists asking price for every home for sale by members of the Spokane Association of REALTORS®. It also tracks sold prices.

This will allow you to look at current asking prices, as well as selling prices. You can count on your agent’s frankness if you are asking too much. He or she will know what people in the area are actually receiving for their home, as well as the history and trends, and the home improvement projects that affect prices in the neighborhood. Work with your agent to factor in all the qualitative aspects of your home.

Neighborhood

Location, location, location. Agents will tell you the worst house in the best neighborhood is worth more than the best house in the worst neighborhood. Considerations to include are schools, services, transportation, and the general upkeep of other nearby homes.

Style, Landscaping

It’s the heart of the “first look” emotional appeal or “curb appeal.” The home has to appeal to who’s living there. After a long day at the office, the welcoming sight of home as you turn into the driveway can rejuvenate the soul.

Floor Plan

The layout of a house really directs how people will live in it. For example, a family that enjoys entertaining often may prefer an open place, like that found in many contemporary houses. But if people prefer their privacy and desire more room for quiet, a more traditional design will catch their eye.

Appealing Details

Custom-made items such as built-ins, draperies or special appliances that you are willing to leave behind can add value to the house. Likewise, for fine architectural elements such as handcrafted wood molding, aristocratically tall ceilings, and dramatic windows.

Improvements

Major improvements may yield attractive returns at sale time. An updated kitchen or a second bath would be major buyer attractions.

Taxes

City and county tax structures can have a significant effect on the value of a house.

Other Factors

Housing value is subject to the laws of supply and demand. If there is a shortage of housing, prices will rise. Seattle is a good example. Homes that sold for $120,000 just a few years ago are now bringing $260,000-plus because there is a shortage of homes for sale and the scarcity of the land to build upon.

Pricing is more of an art than a science. Ask yourself how motivated you are to sell, whether you can wait, or even if the selling price will leave you short with the lender at settlement. Talk to your real estate agent. You may not like what you hear, or you may be ecstatic, but most importantly you will be armed with a realistic and ultimately rewarding perspective that will help you set a proper price to sell your house efficiently and fairly.

And, that would be a great way to start.