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Published at Monday, February 11th, 2019 - 12:02:45 PM. House. By .

How To Price A House When Selling A House By Owner :If youre thinking about selling a house by owner, otherwise known as for sale by owner (or FSBO), one of the primary factors that will determine your success is how to price a house. Setting your price too low, will get your house sold quickly but will transfer wealth (in the form of equity) from you, the seller, to your buyer. Set your price too high and you will have too few prospects looking at your home and even fewer offers. Set the price way too high, and many buyers may feel that as the owner, youre set on your price and will be difficult to work with. As a result, they may decide its just better to not even bother with your house. So, if your goal as a seller is to capture as much equity as possible by getting as high a price as possible for your home, then you need to understand the factors that buyers will take into account when determining what is a fair value for your home. There is a normal tendency by homeowners to overestimate the value of their house because its very hard to be impartial to the house. Lets face it, as a homeowner, weve lived in it for many years, made improvements to the house, invested our hard-earned money in it to make it better and more comfortable, and now we feel that its a great home to live in and anyone looking to buy it should see that. And because homeowners have such a stake in the outcome of the sale, its sometimes hard to accept some cold hard truths. The most difficult concept for homeowners to understand when considering how to price a house is the concept of Supply and Demand. When there is high demand for a product, and not a lot of supply, the product is scarce and so people are willing to pay MORE for the product. Because theyre willing to pay more, the product is worth more. When the demand for a product is low, and there is a large quantity of the product up for sale, the price people are willing to pay will be much lower because they can easily get their hands on the product of their desire. The same concept applies to your house. When the number of buyers looking for houses is greater than the number of houses available for sale (or the supply of houses for sale), the demand is greater than the supply and homeowners will be able to get a higher price for their house. When there are more houses for sale than there are buyers, the supply exceeds the demand, so prices will be forced lower. A good way to measure supply and demand of housing in your area is to ask a local realtor about the absorption rate for your area. The absorption rate is a measure of the local areas ability to absorb the supply of houses on the market and is calculated by dividing the number of houses on the market for six months and dividing it by the number of houses that sold during the same period. For example, if there were 1200 homes for sale over the course of a year, and 100 homes sold every month, it will take 12 months to sell all of the homes currently for sale. If the absorption rate indicates that it will take 6 months or less to sell the available supply of houses on the market, the demand is said to be greater than the supply, and it is termed a Sellers Market. Conversely, if absorption rate indicates that it will take more than 6 month to sell all of the houses on the market, then the supply of housing is greater than the demand, and a Buyers Market will be in place. A Buyers Market leads results in homeowners having to accept lower prices for their homes in order to sell them. The second most important factor that buyers consider when looking for a houses is what value they will be getting for the price of YOUR house compared to the value they would get if they bought someone elses house at a similar price. As an example, consider the following question; would you pay $75,000 for a car thats designed and built for just basic transportation - low horsepower, manual features, and a minimalistic interior? The most likely answer is probably not because you can get a luxury brand automobile for that same price, giving you better styling, more horsepower, more room, a more comfortable leather interior, better stereo, and just about better everything (with the possible exception of miles per gallon of gasoline). Similarly, when thinking about how to price a house, you also need to consider the other houses that your house is competing with. These competing properties are called comparable properties, or in realtor terms, Comps. There are two types of Comps - Active Comps, and Sold Comps. Active Comps are other houses that are similar to yours in terms of bedrooms, bathrooms, square footage, style, condition and neighborhood and are also on the market looking for buyers. Active Comps give you a very good idea of what prices other homeowners are asking for. Sold Comps, on the other hand, are other houses that are similar to yours in terms of bedrooms, bathrooms, square footage, style, condition and neighborhood that have sold within the past 3, 6 or 12 months. Its important to look at sold comps because they will tell you what buyers were actually willing to pay for a house that is similar to yours. Look at how the other active comps are being priced. Are their prices similar to the houses that sold, over-priced, or under-priced? When looking at your Active Comps to determine whether they are priced correctly, you will want to look at Days on Market, or DOM. Days on market will show you how long it took for houses listed at a certain price to sell, or how long houses currently listed for sale have been on the market and have not yet sold. A general rule is that a house should sell within 90 days of it being listed. If it takes longer than that, its generally an indication that it may be priced on the upper end of the price scale. In summary, when trying to decide how to price a house because you are selling a house by owner, you will want to have a good understanding of the local supply and demand for houses in your area. This information will tell you whether you have to price aggressively to sell your house, or if you might be getting multiple offers on your property. Next you will want to compare your house to other houses that are similar to yours and have sold recently, and similar houses that are currently listed for sale. Compare the prices of houses currently listed for sale (active comps) with the prices of those houses that actually sold (sold comps) within the past few months, and determine what buyers would be willing to pay you for your house.

How To Plan A Retirement House For Thailand - Essential Factors To Consider : Pitching Your House Specification - The Important Factors You probably already have a good idea of the type, size, layout etc of the house you are planning to build in Thailand for your retirement. After reading this article you may decide to review your ideas. In the time it has taken to get my house half finished in Pakchong (Pak Chong), Thailand, two colleagues have seen their houses started and completed and at half the cost. In fact the build of our house has turned out to be a nightmare of the kind you hear about in the newspapers or read on the Thai forum websites. On the other hand, these other houses were built quickly and cheaply with no hassles at all. (Compared to my problems anyway) So what was the difference between their house and ours that made all the difference? It All Begins With The Concept - What You Want Your House To Be What you want your house to be will depend upon many factors, who will use it, how do they want to use it and more importantly who is the house for and what are their expectations? Who Is The House Intended For? Our house was essentially my design. The layout of the rooms, style of house, type and quality of finishes etc was based on what I wanted as a retirement house and was of quite a generous standard. My Thai wife of course loved it. My colleagues houses on the other hand appeared to be based on the minimum that they could get away with whilst satisfying their Thai wives requirements. Essentially those houses were based on a Thai wifes expectations. They were designed for the Thai wife not for themselves. The standard of houses in the west tend to be much higher than in Thailand and the westerners demand more mod cons, western kitchen, security doors and windows, high grade fittings and finishes etc. On the other hand, such features of western houses are not commonly found in Thailand, the Thai spouse isnt aware of them and doesnt need them. Hence a house based on a Thai wifes perspective can be much simpler and cheaper than a house based on western standards. Sometimes the designs of these other houses were simply copied from one of the many pre-designed Thai houses that you can download from the Thai Government website. In short they were off-the-peg houses. In contrast I had a set of construction drawings produced by a registered Thai Architect in Bangkok and the set of drawings comprised some 42 sheets! Im glad I had those house plans made and for my large, high spec house, they are essential. Key Thai House Configuration Considerations Whereas there are a number of key considerations that will considerably affect the cost and time to construct a retirement house built in any country, number and size of rooms for example, there are some key considerations that apply specifically to a retirement house built in Thailand. These key considerations relate to the differences in what is considered as normal practice in a Thai house and in a western house. The key considerations are related to the number of floors, the bathroom, the kitchen where there are fundamental differences in approach between western practice and Thai practice. Another key considerations is whether the house is to be provided with air conditioning or not. One Or Two Floors What number of levels you intend to have is one of the most important criteria that can affect the price and speed of building your retirement house in Thailand. For thousands of years Thai houses are built with the living spaces lifted up from the ground on timber or concrete columns, or posts as the Thai describe them. A standard Thai house may exhibit, for example, a dozen posts set in a 3 x 4 matrix, and this is termed a 12 post house. My own retirement house is a 16 post house and the upper story containing the living spaces is 3 m above ground floor level. This is considerably harder to construct and costlier than a bungalow construction having all the living accommodation on the ground floor. I undoubtedly wanted to have a post house, and my Thai wife really likes it, but Im convinced she would have been equally happy with a bungalow. I am paying for my idea to have a traditional Thai post house both in terms of cost and time to construct. Thus think wisely if you certainly want a post house or if you can put up with a one-floor construction which will be less expensive and faster to build. Bathroom Or Shower Room This is a further decision that is most likely to s the price and period to build your retirement house and again, it is a Thai compared to Western subject. Conventional style and basic Thai houses are frequently not provided with a bath as is usually common in a western bathroom. Surprisingly, I prefer not to have a bathtub, because I dont use one. I usually enjoy a shower thats why a basic shower room is all I want. Unusual for a Thai, though my wife does like to relax in a bath tub filled with hot water and those smelly bath salts or bubble bath. So we are having a bath tub. Since i want a walk-in shower room, we are having two bathrooms, one is a western style bathroom with hand wash basin, WC and bat tub, the other a shower room with hand wash basin and shower only. Again, the decisions are made on the basis of answering the question who is the house for?. Type of Kitchen - Thai Style or Western Style Kitchen The style of kitchen you decide to construct is another area that can have a large impact on the cost of the house. Traditionally a lot of preparation of Thai food for cooking is done on the floor. Even though we have a normal western style kitchen in our house in the U.K., my wife still put the crok on the floor to pound the ingredient e.g. for a nam prick. Also the Thai food is often cooked on a single heat source, or at most two heat sources, one for the rice and the other for a pot of food, e.g. soup. In line with this pattern of usage, Thai kitchens traditionally are very simple affairs, and do not have the long waist level counter tops and ovens like a western style kitchen. Frequently the Thai kitchen even in modern Thai houses, is not an enclosed room, but is a simple external area with a roof and perhaps a short table and sink. So you do not really need the expense of a western style kitchen will all the counter tops, cupboards, cookers, grilles, cooker hoods etc that go into a modern western home. In Thailand you will need a refrigerator but many Thai kitchens do not have a freezer or a washing machine for clothes or dishes. Again, my retirement house in Thailand is designed with a western style kitchen, complete with long granite counter-top and integral dual sink, Fridge and Freezer. Provision of cupboards, drawers and washing machines is not part of the current scheme, however, but may be provided later.



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