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Does This Price Tag Make Me Look Phat?

First of all, “Phat” is pronounced fat and is slang for highly attractive.  And the answer is, “maybe”.   It’s tough trying to sell your home in a buyer’s market.  In today’s market you need to know quite a bit more than in previous years.

Webster’s Dictionary states that “value” is: 1 : a fair return or equivalent in goods, services, or money for something exchanged; 2 : the monetary worth of something : market price… Okay, what is “market price”?  Again, according to Webster: It’s a price actually given in current market dealings.

In order to price your home “attractively” you need to know the local market.  Prices vary depending upon the State the home is located in.  Then it depends on the City.  And even then, where in the City it’s located.   Some neighborhoods offer more amenities, closer to public transportation, better schools, more parks, the list goes on and on.  There is a difference between Northwest Denver and Southwest Denver in Colorado.  There could even be variances between neighborhoods less than 5 miles apart.

Other considerations are upgrades to the home.  A house may sell in a neighborhood for more than similar houses because of a new addition, remodeled kitchen or move-in readiness.  The less personalized a home is the more pleasing it is to the buyer.  It may not sell for more, but it’ll sell quicker.

Talk to a real estate professional and a professional appraiser.  They will know the “comps” (recent sales of nearby homes that are similar, or comparable, to the home that’s the subject of the appraisal). If the appraiser cannot locate three comps within your area, you may need to get a second appraisal. This can validate the first appraisal and make a lender more comfortable.

Of course, if you’re a buyer in the market for a new (new to you) home, talk to an buyer’s agent. These professionals will represent only the buyer in a transaction. They’re very knowledgeable about the value of a home and what to look for.