Published at Tuesday, February 12th, 2019 - 07:08:29 AM. 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.
What Do Houses In Vilas Do Atlantico Have To Offer? If you are looking for a luxurious house in Bahia then you must definitely take a look at the real estate options in Vilas do Atlantico. Located in the municipality of Lauro de Freitas, just 12 km from the Salvador international airport and 20 km from the city, Vilas do Atlantico offers an optimum combination of quiet nature and urban conveniences. Being a locality inhabited by affluent people, houses in Vilas do Atlantico are high end real estate options offering premium facilities. Great Location Being near the cities with many international companies, many foreigners and high level executives prefer to stay in Vilas do Atlantico. While it is a convenient place to commute from, it has an excellent beach and is also close to other beaches of the Bahia north coast. Tourist towns like Praia do Forte are also only a short drive away. If you live in Vilas do Atlantico, you will find all everyday conveniences like supermarkets, hospitals, schools, banks, restaurants and malls near you. The public transport is also well developed in this coastal town. Vilas do Atlantico Offers Premium Houses Houses in Vilas do Atlantico will be attractive to all types of buyers. It makes great sense to buy a house here for your own use if you are looking for a house in the coastal area of Bahia. It can also be a great place to invest for renting out due to the number of tourist and business visitors the place receives. The area is likely to see significant capital appreciation as well and therefore it is a good place for long term real estate investment. At Vilas do Atlantico you will find great looking houses built on fairly large plots. Most houses have at least two bedrooms, one suite and come with basic furniture and swimming pool. Depending upon the price and location, you can also expect air-conditioning, premium fittings, party areas, multiple car parks, well designed gardens and play areas. Many houses have quarters for employees and domestic help. Some also come with an office. While the price of houses in Vilas do Atlantico could range from $285,000 to $795,000, the average house will cost you around $475,000. Let us take a closer look at what can be expected at different price levels. Houses Below $300,000 Even the most economical houses in Vilas do Atlantico offer you some choice. You could choose between smaller houses nearer to the beach with all suites and air-conditioning or go for a larger house slightly in town. At this range you may not get a pool, but you can expect a plot of around 600 sq. meters and a built up space of 140 to 350 sq. meters. Houses will typically be 4 bedroom with multiple suites and most houses will have facilities like garden, parking and basic fittings. Some may offer sauna or jacuzzi and some may be fully furnished. Between $300,000 To $400,000 In this range most houses will have a swimming pool. Below $ 360,000 you can expect in town houses with 4 bedrooms, at least one suite, basic fittings like cabinets or wardrobes, maids room and security equipment. Built up area is usually around 200 to 300 sq. meters on a plot of about 600 sq. meters. From $360,000 to $400,000, you will get multi floor houses closer to the beach either standalone or part of a condo. Typical houses have 4 to 5 bedrooms with 2 suites and other things like pool, multiple car parking, bar, barbecue, garden and security features. Built up area will be around 400 sq. meters on 500 sq. meter plots. Some houses will offer fancy features like terrace garden, waterfall or landscaping. Most houses will come with basic fittings. The $400,000 To $500,000 Range Below $450,000 you will get houses in good locations in town with large built area of around 420 sq. meters on larger plots of around 700 sq. meters. In addition to previously mentioned facilities you will get play areas or playgrounds, fancy swimming pool, kennel and living quarters for employees. Between $450,000 to $500,000 you can expect better locations, larger and better gardens, bigger plots up to 1500 sq. meters. You can also get houses on the seaside if you opt for smaller plots up to 900 sq. meters. You can also opt for houses in well planned condos with premium modern construction and private garden. The plots in these cases are likely to be about 500 sq meters. The $500,000 To $700,000 Range You will get very lovely houses in good locations either in town, near the beach or with a sea view. You can expect 380 to 600 sq. meters built area on plots of up to 1200 sq meters. Typical houses have 4 to 5 bedrooms with at least 2 suites. Facilities such as covered car parking, jacuzzi, sauna, living space for employees, office, security systems and nice party areas with bar and barbecue can be expected. Above $700,000 In this budget you will get large, very well designed houses in nice localities a short walk from the beach. You can expect about 750 sq. meters construction on plots in excess of 2500 sq. meters with at least 4 bedrooms and multiple suites. All other facilities mentioned in cheaper options will be available but will be of much better quality. For example, you can expect huge professionally designed gardens, large party areas with dining facilities and separate washrooms for ladies and gents. If you prefer a beach front home, then relatively smaller but luxurious beach front homes with direct beach access are available. Typical houses of this type will offer about 400 sq. meters of construction on about 500 sq. meter plots. You can expect 3 to 4 suites, full air-conditioning, fancy pool, premium furniture, premium flooring, office facility, garden, party area and employee accommodation. Houses in Vilas do Atlantico offer you a wide choice. What fits your needs depends upon your preferences on location and facilities. For any budget there are several choices. One thing that you can be certain of getting is a large multi-floor house set in a spacious well developed plot. Combine these specifications with dual advantages of being close to peaceful nature while having all urban conveniences and you are already looking at some great options. If you are looking for a house for living, renting out or just for investment in Bahia, houses in Vilas do Atlantico will provide plenty of excellent options.
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