What all goes into the process of determining how much a home is worth? Today I’ll talk you through four elements that affect a home’s pricing.
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What are some of the elements involved in determining the price of a property? Knowing these details can make all the difference if you’re trying to sell your home:
1. What are the comparable sales? Comparable sales are homes that have sold in your area that have similar characteristics to your home in terms of the size, the amount of land the property affords, and the types of amenities, benefits, and other features. All these factors can help determine what price buyers will purchase your home for.
2. How many homes in your market recently expired? The reason homes tend to expire from the market is that they were too expensive or they didn’t offer the features and benefits necessary to justify the price they were listed for. Expired listings can actually lend some degree of information about how you as a seller can avoid overpricing your home.
All these factors can help determine what price buyers will purchase your home for.
3. What is the competition like? If your home is similar to many other homes on the market, then there will likely be a lot of competition among buyers for it. This will impact the value of your property, possibly restricting the potential upside you can get from the sale.
4. What are the unique aspects of your property? Is it a waterfront home? Does it have a unique setting on a hilltop with a magnificent view? Does it have special electronic features?
If you look at these various elements and incorporate them into the big picture, it enables a professional real estate agent to provide you with an accurate read on what the value of your home is. From there, you can have a conversation with your agent about whether or not to price your home above, below, or at market value in order to maximize interest among buyers.
If you have any questions, thoughts, or concerns about pricing your home for the market, please reach out to us. We’d be glad to help you out.
