If you’ve inherited a property and you’re planning to sell it, make sure you read this blog post for 3 tips about how to price your inherited home in Washington for sale…
Inheriting a home in Washington can be both a blessing and a challenge. While the property may hold sentimental value, you might decide that selling it is the best option for your financial or personal circumstances. One of the most critical steps in selling an inherited home is determining its correct market value. Pricing it too high may deter potential buyers, while pricing it too low could mean missing out on significant profits. Here’s a comprehensive guide on how to price your inherited home effectively in Washington.
Did you inherit a property that you’re now thinking about selling? While an inherited property can be a wonderful gift from a loved one who has passed on, it can oftentime be a costly burden. So selling it makes sense and allows you to use the gifted equity for some other purpose. But selling an inherited property may not come easy to you, especially if you haven’t sold a property in a while. So here’s how to price your inherited home in Washington for sale:
Tip #1: Price Competitively To Sell Quickly
Some people price their inherited property at an amount they think the market might pay for the house. However, there are many factors that go into this price and one of the biggest considerations is: how fast do you want to sell? Selling through an agent “on the market” can take months, and you’ll have to pay for the house and maintain the property the entire time. That can be costly and can eat into the higher price.
Many property owners quickly learn that they’re almost better off to price slightly lower for a faster sale… they might get less for the house but they also pay less on repairs, carrying costs, effort, and time, so it’s ultimately a trade-off that might turn out to be a total wash.
Understand the Local Real Estate Market
Before setting a price, familiarize yourself with the current real estate market conditions in Washington. Markets can vary greatly from one city to another, and even between neighborhoods. Factors such as supply and demand, economic conditions, and seasonal trends can influence property values.
- Research Comparable Sales (Comps): Look at recent sales of similar properties in the same area. Pay attention to homes that are similar in size, age, condition, and features.
- Monitor Market Trends: Keep an eye on whether the market is favoring sellers or buyers. In a seller’s market, you might price your home higher due to high demand and low inventory.
Get a Professional Appraisal
Hiring a licensed appraiser provides an objective assessment of your property’s value based on various factors, including location, condition, size, and recent comparable sales.
- Benefits of an Appraisal:
- Accurate Valuation: Ensures you’re not undervaluing or overpricing the home.
- Credibility: An appraisal report can be a valuable tool during negotiations with potential buyers.
- Choosing an Appraiser: Select a professional with experience in the Washington area to ensure they are familiar with local market nuances.
Consult with a Real Estate Expert
An experienced real estate expert specializing in the Washington market can offer invaluable insights.
- Market Analysis: Agents can provide a Comparative Market Analysis (CMA) to help determine a competitive listing price.
- Strategic Pricing: They can advise on pricing strategies, such as pricing slightly below market value to generate multiple offers.
- Negotiation Skills: Agents can help navigate offers and counteroffers to maximize your profit.
Tip #2: Avoid Pricing Based On Fond Memories Or Emotion
One of the biggest challenges that property owners of inherited property face when trying to price their property for sale is separating the happy memories from the true value of the house. The house might be worth a certain amount on the market but you may have such fond memories of growing up in the house or of happy times in the house that you accidentally use that emotion to increase the price. (This is VERY common.)
A better approach would be to work with a real estate company and find out what they can offer you, and recognize that the price might be lower than you were expecting… not because the house isn’t worth as much but because your wonderful memories have accidentally inflated the price!
Factor in Emotional Value Appropriately
While the home may hold sentimental value, it’s essential to remain objective when pricing.
- Avoid Overpricing: Emotional attachment can lead to overestimating the property’s worth.
- Focus on Market Value: Base your pricing decisions on data and professional advice rather than personal feelings.
Tip #3: Build In Discounts For Repairs
If you inherited the property from a loved one who had lived in the property for many years then you might find out that the property needs some repairs. You could choose to do this work yourself and then ask for a higher price but why do that when you could save yourself the time and effort (and what you’d have to pay for equipment, supplies, or a contractor) and instead just ask for less and give a “repair discount”. That way you avoid the hassle of the work, and you still come out the same financially.
Assess the Property’s Condition
The condition of the home significantly affects its market value.
- Make Necessary Repairs: Fix any structural issues, plumbing problems, or electrical faults that could decrease the home’s value.
- Consider Upgrades: Simple upgrades like fresh paint, updated fixtures, or landscaping can increase appeal and justify a higher price.
- As-Is Sale: If you prefer not to make repairs, adjust the price accordingly to reflect the property’s condition.
Tip #4 Account for Holding Costs and Taxes
Consider the costs associated with maintaining the property until it sells.
Price Accordingly: Factor these costs into your pricing strategy to ensure you cover expenses without deterring buyers.
Ongoing Expenses: Property taxes, insurance, utilities, and maintenance can add up.
Capital Gains Tax: Be aware of potential tax implications from the sale, although the stepped-up basis may minimize capital gains taxes on inherited property.
Summary
An inherited house can be a lot of work so if you’re thinking of selling it, you’re certainly not alone. But how do you price an inherited house? These tips will guide you on how to price your inherited home in Washington for sale.
Be Competitive and Realistic
Setting a realistic price is key to attracting buyers and selling the home promptly.
- Avoid Testing the Market with High Prices: Overpricing can lead to the property sitting unsold, which may raise red flags for buyers.
- Be Open to Adjustments: If the home isn’t attracting interest, be prepared to reevaluate and adjust the price.
Consider Selling to a Professional Buyer
If you prefer a quick and hassle-free sale, consider selling directly to a professional home-buying company like Wenatchee Home Buyers.
- Benefits Include:
- Fast Closing: Sell your home quickly without the typical delays.
- As-Is Purchase: No need to make repairs or upgrades.
- No Commissions or Fees: Avoid real estate agent commissions and closing costs.
Stage the Home for Maximum Appeal
First impressions matter. Proper staging can enhance perceived value.
- Declutter and Depersonalize: Remove personal items to help buyers envision themselves in the space.
- Enhance Curb Appeal: Ensure the exterior is welcoming with well-maintained landscaping.
- Professional Staging: Consider hiring a staging professional to highlight the home’s best features.
Market Effectively
A well-executed marketing plan can attract more potential buyers.
- High-Quality Photos: Invest in professional photography to showcase the home online.
- Online Listings: Utilize popular real estate websites and social media platforms.
- Open Houses and Showings: Make the property available for viewings to generate interest.
Pricing your inherited home correctly in Washington is crucial for a successful sale. By understanding the local market, seeking professional guidance, and considering all factors that affect the property’s value, you can set a competitive price that attracts buyers and maximizes your return.
If you’re looking for expert assistance in selling your inherited home, Wenatchee Home Buyers is here to help. We specialize in helping homeowners navigate the complexities of selling inherited properties. Contact us today to learn more about how we can make the process smooth and stress-free.
Why not bypass all the work and cost of selling through an agent and instead get in touch with us today about selling your inherited property to us here at Wenatchee Home Buyers? Just call us at (509) 906-3680 or click here and enter your information in the form.