Wondering how much to ask for your house?
Check out this video to find out!
(click play below)
Hey, Travis Daggett with Cornerstone Properties in Eugene, and I’m here in Veneta, Oregon.
And want to talk today about one of the top questions that sellers have, and that is how to price your house, or how much to ask when you’re selling your house. So, when you think about that question, the first thing you want to realize is that there’s two ways in general that you can sell a house today.
One is, on the multiple listing service, and that’s more of the traditional way. Listing it with an agent, and you open it up to the largest number of buyers, and you can potentially get the highest price. However, it’s going to take the longest, probably. And, you’re gonna have the least amount of privacy. You’re going to have a sign in your yard, you’re going to have a lockbox in your door. You may have an open house, but you’re certainly going to have people walking through your property.
And, it can take months, both to get offers and then to go through the offer process. Because the number one reason that sales fail, is because of financing. And sometimes you don’t find that out until the very end, that the buyers financing has actually fallen through. So, you could have gone through the inspection, and the appraisal, and being ready to close and find out the buyer’s lender is not going to lend on it, or they’re not going to lend as much as you thought. Or they’re going to require repairs to be done. So that’s the traditional method of selling your house, usually using a real estate broker and agent a realtor.
The other way you can sell a house, in general, is privately and to directly to a buyer. Somebody like us. So we buy houses for cash, as is, with no contingencies. So when you sell to somebody like us, you’re selling it without having to do any repairs. And since we’re buying with cash, there’s no problem with not being able to get financing. And so, you know exactly what you’re going to get. And we can also close very quickly. We can close in a week, if needed.
So those are the two ways you can sell your house. If you do sell it to someone like us, again, you’re not having a bunch of people go through your house, not having a lockbox on the door, sign in the yard, open houses, and that whole process. So how that relates to how much you should ask for your house is, number one, if you’re listing it the traditional way, or selling it through traditional way, yeah, you’ll probably get the highest price, and there’s a cost in time, and convenience and privacy for that. If you sell it to somebody like us directly, it’s probably going to be a lower price, but you’re going to hopefully, have a less stressful and frustrating, and just pushing the easy button.
So as far as how much to ask for your house, there are basically three types of houses on the market today. One is a move in ready, or fully renovated, a new construction house. If you have a house like that, then probably your best bet is going to be the traditional route. List it with an agent. Get the highest price possible, that you can. And you might be waiting a little longer, but that’s okay.
The other type of property that you may have is, a property that just needs cosmetic improvements or renovations. So we’re talking about things like floors, paint, that type of thing. Nothing major, nothing structural, nothing that’s a health and safety issue, and nothing that would affect financing for a lender. If you have that type of property, you could go one way or the other. If you’re going to sell the traditional way, then you’re probably going to want to do those necessary renovations, and you can ask a higher price. But, if you don’t want to do any of that, you can again push the easy button,
… and sell it to somebody like us, and it’ll be a lesser price, but it’s more convenient.
The other type of house did you may have, is the house that needs major renovations. It’s got structural issues, like the foundation, needs a new roof, siding may have a dry rot, plumbing, electrical issues. That type of house is most of the time, that’s sold to somebody like us. Because if you list it, you’re still going to be dealing with an investor buyer like us anyway, but now you’re paying an agent their commissions, and dealing with all those fees.
So with the house like that, how much are you going to ask for a price? Well, you’re going to need to take what the property’s worth fixed up, and generally you can get a good idea of what that price is going to be by looking at what comparable properties have sold for in your neighborhood, that are fixed up. And then, you’re gonna have to take off the cost of all those repairs. That can be hard to estimate, if you haven’t done that before. But that’s what we do when we come in and look at your house, is we’re able to tell how much it’s gonna cost to do those renovations.
So you take off the cost of that, and then you need to have a margin or a cushion for the risk. Because there’s always the possibility that you’re going to find other items that need fixed. And we usually do. It’s very rare that properties cost less than we thought they would cost to fix, they usually cost more. So you’re going to need to build in a buffer there, and then that’s where you can arrive at your price. Oh, and also take off the cost to sell it, of course. That’s where you’re going to arrive at your price that you should ask now.
So two different ways you can sell your house traditional, list it with an agent, or privately to someone like us. And three different types of properties, move in ready or new, fully renovated, needs cosmetic repairs, or needs major work. And three different types of prices, that go with those three different types of properties. And a couple of different ways to price a property, depending on how you’re selling it.
If you have any questions on what you should ask for your property, or you have a property that you want to sell, and you’d just like us to look at it. And see what we can offer you for it, as is, with no contingencies, and close quickly or whenever you want, just give us a call, be happy to talk to you. You can also go to our website. And if you have any questions about real estate in general, happy to answer those as well.
I’m Travis Daggett, and I’m with Cornerstone Properties in Eugene, I’m here today in Veneta, Oregon.