Your Home – price and price reductions

When it comes to pricing a home, or lowering the price of a home eventually, there are some comments and ideas that owners come up with over and over. Let’s look at some of the most popular ones.

Real Estate Myths: Common Wisdom that isn’t so Wise

Let’s look at two elements of common wisdom that many buyers follow when purchasing a home. One element advises them to eliminate certain houses from consideration. The other, tells them how much to spend. We consider both these elements of common wisdom to be myths!

Mortgage Appraisals

If you apply for a mortgage for your home purchase, the bank or lender will require an appraisal of the property. Here is a list of some basic questions and answers about appraisals. For the sake of simplicity, we will assume the most typical scenario: the appraisal is for a mortgage for 80% of the purchase price, and you will be covering 20% of the purchase price from your own money. If you need to borrow more than 80%, or have enough of your own money to borrow less, the basic concepts are the same but. there are some significant differences. We will cover the less typical situations in future posts.

Pricing your Home for Sale

Pricing your home for sale simply means deciding what the Asking i.e. Listing Price of your home will be. In other words, deciding on the dollar amount that you and your agent will ask for your home in all the published data bases and marketing materials. Typically, a serious estimate of the home’s worth i.e. value is the starting point. The objective is to price the home – bearing in mind its estimated value – so that you will get the highest possible Sale Price. Of course, the Sale Price isn’t final until the house is actually sold. So, let’s look at each of these things and discuss how to price your home strategically so you get the highest Sale Price. That’s the bottom line, isn’t it?