How To Determine The Price Of Your Property

“How much money is my home actually worth?” When you’re looking to sell your house, that’s probably the first question that will come to your mind. I know, you’ve created memories under that roof that have a lot of sentiment and value, but now it’s time to pass it onto someone else. Let me tell you how that can be done instantly! The most important factor that will determine how quickly your house will sell is the listing price. That is one of the initial aspects that will either lure in an interested buyer or push them away. Of course you want the greatest number possible, but a random price tag cannot be attached. A real estate agent can happily guide you in the right direction and help you decide on a number that will satisfy both the seller and buyer, which is exactly what you want! There are 4 factors that are taken into consideration when comprising the value.

Location
It’s safe to say that every buyer will want to know how safe an area is, especially if they have children. If a town has a reputation of a poor school district for example, the value would most likely not be on the same level as a similar property in a beautiful, more desirable area. Residents typically want their children to receive the best education possible and is a main reason why movement takes place. If two comparable houses are priced similarly; a rough vs pleasing town, it’s certain that a buyer would choose the better location if they would be paying the same amount of money. If your home is located on a main road, people’s interest may steer away which will therefore affect a home’s value. Additionally, a location on a busy road will most likely turn heads and cause some value loss. A buyer’s willingness to accept a location on a main road is intuitive, so having your property on a side street as opposed to the main road makes a huge difference when trying to grasp interest. On a positive note, the accessibility of certain facilities, such as schools and favorable restaurants, certainly make a home more preferable and buyers tend to be head over heels for that luxury. Who wouldn’t like Starbucks to be right around the corner from their house?

Finding Comparable Homes
It is crucial to find other comparable homes in your area that have recently sold. Comps provide a range for a property’s “market value,” indicating if your intended listing price is low, fair, or high. When selecting homes, the time frame is important to make note of. Anything longer than 6 months to 1 year is not ideal because you want to be as up to date with the market as possible. It’s essentially like comparing apples to apples. You want your apples to both appear similar. If one is bruised and the other is in perfect condition, they do not appear alike anymore and one will be favored over the other. The lot size, square footage, number of bathrooms, number of rooms, etc must also be close if not identical in comparison. By viewing similar homes, realtors and buyers are able to grasp a better understanding of how properties are withstanding in the market in regard to profitability. This will enable the prediction of whether or not purchasing a home in that location is a good idea or not.

The Condition
The condition of your home either makes or breaks a deal. It has such a major impact on the overall value that many clients will pay top-dollar for a move-in-ready home. A lot of buyers even include an inspection contingency in their contract. This is done in case they need to negotiate any expenses pertaining to the home’s condition in order for the transaction to continue. Structure and construction also tie into the condition. A home that’s been built or updated with newer materials will be valued higher rather than a house that has all of its original features. Roof and window updates also contribute in the sense that they boost the safety of the home’s structure. If the home is not upkept and appears to be run down, you will most likely need to list it at a lower price and it’ll sit on the market for a longer duration of time. Leaking pipes, holes in the wall, broken appliances and mold are not exactly eye candy and don’t come across as appealing.

Updates and Renovations
Any repairs or refurbishments you make prior to selling like replacing an H-VAC system, kitchens, bathrooms and windows can positively impact your home’s value. Despite the fact that renovations can be costly, having them done prior to a sale may be beneficial in the long run. But, that’s not to say that renovations must be done beforehand. In today’s market, certain upgrades might not justify the cost and you will end up spending more on renovations that don’t necessarily increase the home’s value. Selling your property as-is could be the best route to take. Always consult with your local real estate agent to understand which replacements will make the most financial and substantial sense.