Selling Your House FAQ
Tips for selling your house: setting the right price, timing the sale, and hiring an agent.
When should I sell my house?
Too many people sell their house at the wrong time, or are in too much of a hurry. Basically, you want to sell when you're ready and there's the largest potential pool of buyers -- causing prices to go up. This occurs in the following situations:
- Mortgage interest rates are low.
- The economic climate of your region is healthy and people feel confident about the future.
- There's a jump in housebuying activity, as often occurs in the spring.
- Your area is considered especially attractive -- because of the schools, low crime rate, weather, proximity to a major city, or other factors such as employment opportunities.
Of course, if you have to move immediately -- because of financial reasons, a divorce, a job move, or an imperative health concern -- and you don't have any of the advantages listed above -- you may have to settle for a lower price, or help the buyer with financing, in order to make a quick sale.
How do I set the selling price for my house?
The key thing to setting a price is determining how much your property is actually worth on the market -- called "appraising" a house's value. Because no two houses are alike, it's impossible to predict with absolute certainty what a buyer will pay for yours. However, the best indicator is recent sales prices of similar properties in your neighborhood ("comps").
Real estate agents have access to local sales data and can give you a good estimate of what your house should sell for. Many real estate agents will offer this service free, in hopes that you will list your house with them.
To get a ballpark figure on your own, use websites such as http://www.domania.com. By entering your address, you'll be able to pull up sales prices for recently sold homes of the same size as yours in your neighborhood.
Observing the asking prices of houses still on the market can provide guidance. However, you'll need to adjust these prices for local market conditions. In some areas, asking prices are typically 10% or more over the market. To find out asking prices, go to open houses, check newspaper real estate classified ads, and go to online listings such as http://www.realtor.com.
Other options include hiring a professional real estate appraiser and visiting public record offices, such as your county clerk or recorder's office.
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