Pricing Your Home
Importance of Setting the Correct Price:
The single most important factor determining whether or not your property will sell is the price. The price of your home should be based on the market value of homes similar to yours in your area. The most common mistake is over-pricing your home, it's easily done because this is human nature but it can be a costly mistake.
The First Month that your property is for sale is typically your best chance to sell - the interest level will be high because your listing is new. Your listing on OKHomeseller has a "New" status for the first 30 days to help maximize the exposure. It is important that you take advantage of that first month by making sure your property is properly priced.
Methods to Determine Your Asking Price:
1. Compare to Other Homes in the Area
- Check out homes for sale in your area that are similar (in terms of size, features, etc). You can also compare to property listed on the MLS on www.realtor.ca.
- Keep in mind that Asking Price and Selling Price are often times very different.
2. BC Assessment Website
- Database of Sold and assessed values for property tax purposes.
- Somewhat difficult to use and can lag behind the market.
3. Professional Appraiser
- Cost is roughly $400 - $600. An independent appraisal is an objective measurement of the value of your property. It isn't your opinion, it's the opinion of a professional appraiser and that can be helpful in your advertising and during negotiations.
- An appraiser typically uses the Cost Method (replacement value) and the Market Value Method.
- When determining your asking price the Market Value is the most relevant.
4. Comparative Market Analysis (CMA)
- The CMA is based on comparing your home to similar properties in your area that have recently sold.
- Most real estate agents will provide (for free - no obligation) a CMA to help you determine your price. They have the experience, the training and the sold data to help you determine your price. Keep in mind that you are in control and you are not obliged to list your home with an agent that provides you with pricing information.