How Much Would You Sell Your Own Home?

Now that you've decided to sell your own home, how much would the price be? Would you simply put in how much you paid for it and just add a hefty markup? How would you avoid pricing it too low (a loss for you)? Or too high (delaying the selling process)?

First, be objective.

The only relevant question is: how much will a buyer be willing to pay for your home? Buyers do not care how much you paid for it (it was a fortune then but you have to have it), how much you invested in improving it (parquet floors, beautiful landscaped yard) or even how much down payment you need to pay for your next house.

Here are some pointers to help you know your homes real worth.

The first thing to remember in pricing is that the market is based on supply and demand. This means your home's value depends on current market conditions. Have the prices been going up or down? Are home sales active or at a standstill? Are interest rates good at the moment? What is the current status of the economy?

Check the recent home sales in your area, including those still unsold. Look for those that match your home. Make an impartial appraisal on how those homes compare to yours in terms of location, size, amenities and present condition. From there, you can have a rough estimate on the price.

Would you want to hire an agent? He or she can help you with the CMA (comparative market analysis) on your home, and draw up a realistic asking price for it. If you want to sell your home yourself, you can do your own research from the hundreds of sites that can help you get a better idea of your home's value.

Know the difference between an asking price and the selling price. The first is what you want for your property. The second is the actual price your home will sell in the market.

If you did your research and had based the asking price on the current prevailing market conditions, the selling price may not be far from it.

Now that you know the ballpark figure of your homes worth, maybe you would want to speed up the selling process, without downgrading your selling price. You can attract buyers if you can close escrow quickly. Or offer them seller financing (if you have any) or a lease option in down payments (if you can).

All these can speed up the transaction in selling your own home at a price you really wanted.