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Using Comparables to Price Your Home for Sale or Rent

Whether you’re renting your home or selling it, one of the most important parts of the process is setting the price. Even the most beautiful home in the best neighborhood won’t sell if it’s priced too high, and you won’t make a profit if it’s priced too low. To find the sweet spot, use comparable sales or rentals in your area. Here are some tips:

  • Location: The exact same house will sell or rent for very different prices if it’s located in Carmel vs. being located in Broad Ripple. When using comparables, the closer the comp is to your house the better, but don’t just use any comparable sale within a mile radius. A good comparable sale is a house in your neighborhood, your subdivision, on the same type of street as your house, and in your school district.
  • Home type: Try to find comparable sales that are like your home in style, construction material, square footage, number of bedrooms and baths, basement (having one and whether it’s finished), finishes, and yard size.
  • Amenities and upgrades: Is the kitchen new? Does the comparable sale house have full A/C? Is there crown molding, a deck, or a pool? Does your community have the same amenities (pool, workout room, walking trails, etc.) and homeowners association fees?
  • Sales sweeteners: Did the comparable-sale sellers give the buyers downpayment assistance, closing costs, or a free television? You have to reduce the value of any comparable sale to account for any deal sweeteners.

These are all good starting points, but whether you’re selling or renting, make sure you’re working with an experienced real estate agent or property management agent to make sure you’re setting your price just right. Want more information? Call us today.

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