How to Price a House | Pricing a Unique Home
Agents Learn How to Price a House in Real Estate School
Some 27 years ago, when I became a brand new real estate agent, I learned how to price a house. We compared five or six houses in a subdivision, located along a single street.
Each house had basically the same look from the outside. Some had garages and/or decks; some had more bedrooms or baths than others; some had upgrades that other houses didn’t – a new kitchen, upgraded bathroom, etc. We learned how to price a house, by comparing the neighboring properties to the “subject” house – the house we were trying to determine how to price. We used a form like the one below:
These days, determining a house price is done pretty much the same way. You may not find a comparable house on the same street, or even in the same development, but usually, you can find a similar property within a reasonable distance. This rule generally applies to the pricing of more standard properties.
Once you establish a rough price, the rule of thumb is to list your property slightly higher than recently sold comparable houses, and slightly lower than comparable properties that are actively on the market. This should give your house a slight edge over the competition.
Don’t make the mistake of pricing your house too high to compensate for a desire to negotiate! These days, buyers are savvy, and there are a lot more houses available for sale than there have been in many years.
It is far better to have more showings and less room to negotiate than a lot of room to negotiate and no showings!
Determining how to price a house can be quite challenging, especially if you own a unique house!
As you can imagine, a unique house may have nothing similar to compare it. Unusual houses are not generally located in a subdivision or development. Sometimes it is necessary to reach a good distance out of an area to find a comparable property for a Special “Find…”.
For other ideas to help you sell your unique property, read my post: Tips to Sell a Unique Property