How to Determine the Perfect Price when Buying or Selling a House

Angi Staff
Written by Angi Staff
Updated October 8, 2015
wrap around porch, country house, farmhouse
You don't want to overpay for a house if you're looking to buy, nor do you want to list your house above market value as the seller. (Photo courtesy of Angi member Gina B., of Bozeman, Montana)

Price point is key when it comes to the real estate market.

In a tough housing market, everyone is looking for a deal. Whether you’re looking to sell or buy, the experts agree that pricing is everything.

How to Price a House For Sale

If you’re looking to sell your home quickly, it is important to think objectively and set a realistic price. It’s often difficult for sellers to detach themselves from the process when it’s their own home.

Once you have your price set, think about cosmetic improvements that increase curb appeal and fix little things, such as leaky faucets. When people are thinking about buying a house they are looking for reasons to rule it out — and little things might make them start thinking about big things that could be wrong.

If you’re thinking about larger remodeling projects to help improve your home's resale value or appeal, first assess your home and your neighborhood.

Find out the typical resale price of homes in your area because you don’t want to have the most expensive house on the block. Many buyers won’t pay more for updates because there are often other homes with comparable improvements and at a lower cost.

With a little research, you can see what the average sale price is for homes in your area and determine what your ceiling is for investment.

How to Set a Budget when Buying a House

If you’re in the market to buy a home, and when evaluating potential purchases, don’t underestimate the value of a quality home inspection. Even multiple inspections are becoming more common.

If you're looking to buy, comparative shopping is key. In order to get the price you want, you have to arm yourself with information.

Check out similar homes. Also ask yourself the following questions:

• What can you afford? You may qualify for a higher amount that you actually want to pay.

It’s important to not only check with a mortgage agent to get pre-approved, but to know what the payments will be at that amount. Remember to factor in homeowners insurance, property taxes, utility bills, moving costs, maintenance and any upgrades that you’ll need to make.

• What do you want? Make a list of what you want and don’t want. Search for homes online to get some ideas.

• Are you looking for a small home or a home where your family can grow?

Also, consult with a highly rated Realtor who is familiar with what it is you're looking for in a new house. His or her expertise can be invaluable in the search for a new home.