Determining Your Home’s Value

Proper Pricing

Proper pricing is dependent on several factors, the most important being recent comparable sales in the neighborhood, what is currently on the market in competition with your home, and the condition of your home.

These factors can change rapidly within months, so a current market analysis on your home is crucial to pricing your home correctly. Price it too low, you lose some of your equity, price it too high you lose potential buyers.

The most common mistake is over-pricing. Overpricing your home means it sits on the market longer, and one of the first questions a buyer usually asks is how long a property has been on the market. The longer your home has been for sale, the more the buyers are inclined to believe something is “wrong” with it, and the lower the offer will be.

What Does Not Affect a Home’s Value

  • What you paid for the home.
  • What you put into your home in remodeling or decorating. These are features which really only enhance a home’s desirability and make it sell faster.
  • The amount of cash you need to buy your new home.
  • What you say your home is worth.
  • What your agent says your home is worth.
  • What another agent says your home is worth.
  • What an appraiser says your home is worth.

What Does Affect a Home’s Value

  • Location of the home.
  • Major improvements on the home (pools, covered patios, etc)
  • Recent comparable sales within the last six months
  • Current competition on the market
  • What a sophisticated buyer is willing to pay based on his comparison of your home with others currently on the market. Agents and sellers set list prices, but buyers determine value!

Article by Diann E. Tonnesen, RealtorĀ®

This article is copy write protected and may only be reprinted with permission of the author. Any use of this article without express written permission of the author will be prosecuted to the fullest extent allowed by law.

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