How to price a home
When it comes time to sell a home, the most important thing a home seller will do is price the home. So how should you price your house? We recommend doing it the same way that residential real estate agents price homes.
There are four steps to home pricing
Find a source of listing data that lets you get access to exterior and interior photographs of properties that are sold in the last year. Many MLS’s such as Washington’s Northwest Multiple Listing Service provide this data to the customers of brokers, if they are logged into their broker’s website. If your local MLS does not let you get access to this data, you can often find the photos from a prior listing on Zillow.
Select a handful of properties that are as similar to your home as possible. The key metrics to line up include:Similar number of bedrooms and bathrooms
Similar size in terms of square feet, which means within 10-15%
Similar area that is close to the property, but also would be considered the same neighborhood
No substantial differences in lot size
Derive the price per square foot for each of the target properties. Benchmarket this number with level of interior finish in the photographs.
Use the likely price per square foot for your house to arrive at a price.
This method is not entirely foolproof, but can be quite helpful to owners who want evidence based pricing. Without this information, you might let someone confuse you to their advantage.