If you’ve decided to sell your home without a listing agent, you will have a few tasks to start on quickly; you will need to research the best marketing techniques for your area of town, you will need to contact the best buyer’s agents in your city, and you will need to know exactly how much your home is worth. Knowing where to price your home is an important piece of the sales puzzle. If you price your home too high, you won’t even be able to convince buyers to look at the home, and if you price it too low, you may lose $5 to $10,000 in a matter of months. So how do you price your house appropriately?

What NOT to Compare your Home to – One of the biggest mistakes a homeowner can make is to compare their home to others on the market. This is a common misconception, that other homeowners have correctly evaluated the market and that they are priced at market value. Often times, even against the recommendations of their own real estate agents, homeowners will list their homes far above fair market value, thinking that a buyer will always want to bring in a “lowball” offer, and when they meet in the middle, this will actually get them a fair price. Unfortunately, they couldn’t be more wrong in this situation, as many buyers are scared off by overpriced homes, thinking that sellers are unreasonable or will be difficult to work with.

CMA – A comparative market analysis is what you’ll need to do to price your home appropriately. A CMA is what Berkeley real estate agents do, and is quite easy for them, since they have access to the MLS (multi-listing system). A CMA is using SOLD home prices in the last three months of similar homes in the area to price their own property. It may be difficult for you as a homeowner to compare your home to other homes, since you will naturally be biased and think of your home as more special or unique than others in your area.

Price per Square Foot – If your home is unique, then you may really run into some problems with pricing, since some neighborhoods have very different sizes and styles of homes. If you do know of a few sales in the past few months, but the homes are very different sizes, you can easily price your home by using the price per square foot. If a 1,200 sq ft home that has been updated in your neighborhood has sold recently for $120,000 and you’re looking to price your 1,700 sq ft updated home, you will divide $120,000/1,200 to get $10 per square foot. Now multiple the $10 times the 1,700 square feet of your home and you should land at $170,000.

About PorchLight Real Estate: PorchLight Real Estate Group has the most experienced and knowledgeable Denver real estate agents in Colorado. For more information about homes for sale in Denver CO or specific neighborhood homes please visit www.porchlightgroup.com.

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