The rest of this chapter will deal with setting the right price for your home, and then we’ll move on to some of the most common mistakes that sellers — including sellers in your situation and life stage — make, and how to avoid them.
SETTING THE RI G THE RIGHT PRICE
Contrary to what many people assume, setting the right price for your home involves several steps, as well as many considerations you might not have considered. For example, if you’re in the position of needing to sell your home quickly, you might have to compromise on price. If a home is inherited and not in great condition (but in a great location), this will involve a completely different pricing strategy. Setting a listing price for your home is actually a strategic exercise that aligns the seller’s goals with the overall selling approach. It involves the marriage of art and science. It involves factors such as timing, location, condition, features, amenities, etc. A calculated home value isn’t necessarily what you believe your home is worth. Recognizing this helps you avoid overpricing — a big factor that often leaves homes languishing on the market. As you begin the process of downsizing, you definitely want to avoid this happening to you.
MARKET VALUE, APPRAISAL VALUE, AND ASSESSED VALUE
When working with your real estate agent to set the right price for your home, it’s important to know the difference between the three terms listed above. If you can understand the basics of what these mean and how they differ, you can work better with your agent.
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