There’s a delicate balance between getting the best price for your home and achieving a fast home sale. How much you ask for your home when it first hits the market can be the difference between selling fast for a great price and missing out on motivated buyers. However, the greatest threat to many home sales is a low appraisal. Mortgage lenders won’t approve your buyer’s bid unless the appraisal supports the price. Given this challenge, how much should you ask for your home?
Calculate Your Home Value
One of the first things I’ll help you do when you decide you would like to sell your home is evaluate your home and recently sold houses similar to yours to determine a realistic home value for your property.
Ask for the Right Price
Most of the awareness for your home will happen within the first two weeks it’s on the market. Therefore, an accurate price upfront will attract the pool of potential buyers in your home’s target price range, rather than those dependent on you lowering the asking price.
Protect Your Appraisal Value
Mortgage loans falling through due to low appraisals is one of the most common reasons a home sale falls through. When comparing your offers, buyers who are prepared to put down 20% or more or who guarantee the sales price regardless of the appraised value are less likely to fall through for appraisal purposes.