Hey guys, today we are looking at how to accurately price houses. To demonstrate the steps in the pricing process, I will evaluate a house I have never stepped foot in and walk you through the various elements that may affect the price. Then I will show you how we get a number estimate for the price. Watch today’s videos to find out more.
“Hey guys, somebody asked me how we accurately price houses, so we’ve never been in this house, but we’re going to do it right now. Kitchens and bathrooms sell houses. This one has been mostly updated with nice appliances, the floor is nice, but the backsplash is outdated. In the bathroom, we’ve got nice mirrors, lights, floors, but unfortunately, we have an outdated, tiny shower. They do have nice floors in here. I would say this house is slightly above average, so what we’re going to do is go back, take a look at what the average sales price is here for this type of house and we’ll come up with our number.”
“So I am going to come over to the MLS, there are other websites for this too, but I’m going to pull up everything that sold in the past 6 months. These are all the houses that are within 300 square feet of this property which is about 1700. We’re going to have it do all the math for us, and the average price for square foot is about $181.51. So here’s where having a little market knowledge comes in handy. This side of Hulen is not as desirable as the other side of Hulen because there’s a lot of multi-family homes. Houses with character are a big draw to this area, so you can see by this house, it was 172 square feet. The house you just saw was on the same side of the tracks so let’s give them the benefit of the doubt and bump it up to $180/sq ft. Multiply that times the square footage, which gives us $313,020. Give them another $30,000 because it’s a newer house. There’s your price: $343,020. This one was a little bit tougher because it’s not a cookie-cutter neighborhood, but I think this one will sell for close to that number.”
We may do a part 3 to this video when the house sells to tell you how much it went for, so stay tuned for that. Follow us on our social media so that you never miss a post.