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| *Ostroff, Fair and Company>>>Renting & Real Estate |
How do we price a house we are wanting to sell? |
We have the comps from the area and have a ball park figure that we are thinking of, however there are some issues that need to be addressed. The roof and AC are due for replacement in the next year, the carpet should be replaced (just old); etc. Do we take out for that in our asking price or use that as a "we'll give you x amount of $ off" We don't have the $$ currently available to get all that fixed. Just using round numbers, comps arount the area for similar homes are at $200K. With estimates, etc it will take about $7-10K to get repairs / replacements. Do we ask for 190K and note that the 10K less is for the repairs? The potential buyer will not be able to get a mortgage loan without an accurate apprasial done by a professional in writing. The amount of money you deduct from your asking price should be negotiated between you and the seller based on the apprasial amount. The apprasial will reflect the decrease in value based on the repairs needed. In other words just because your house may potentially appraise at $200,000 in perfect condition, but needs repairs as you mentioned the roof, air conditioning, and carpeting, doesn't mean the current apprasial amount is going to be $200,000. The best way is to get it appraised, retain the services of a licensed real estate agent...they will guide you through the processes. good luck 40+ years experience I would just lower the price. Noting anything about repairs on a purchase agreement, could cause problems with the buyer's lender. Look in the phone book for a real estate company in your area that does free evaluations. They will come to your property and give you an honest appraisal of what your property should be listed for. Of course, they will try to convince you to sign with them to sell it - but you are under no obligation to do so if you are intent on sale by owner. My experience ( not too pleasant) with an attempt at owner sale leads me to advise you to go ahead an sign with an agent. Had we done so from the start, we could have saved ourselves months of time and major headaches trying to navigate the process. That is what a good real estate agent will do for you. It is worth the money in the long run. You already have a good estimate of what the place is actually worth. Confirm it with zillow.com. If you are under no pressure to sell the place quickly, add a bit for haggling room and list it for that. I'd probably ask $198,500. |
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