When it comes time to put your house on the market, your first question is likely to be, “How much can I get for it?” There are many key factors real estate agents take into consideration to sell a home and set a price, from market conditions and location to comps in the area. Here’s a look at the top ones.
Current Market Conditions
The price you can command for your home will depend on the current state of the real estate market. In a buyers’ market, you have less leeway in asking a top price. In a sellers’ market, you can set a price at the upper end of the value, and can even get more depending on the competition for your home.
Your real estate agent will research comps (also known as comparable sales) in the neighborhood. The prices your neighbors are commanding for similar style homes can play a big role in how much you can get for yours. Comps are just one way in which Realtors determine market value.
The old adage about real estate – location, location, location – is true for a reason. When appraisers determine your home’s value, they look at three primary factors:
- Quality of the local school system
- Employment opportunities
- Proximity to entertainment, shopping and recreational centers
On top of that, they’ll take into consideration the home’s proximity to highways, utility lines, and public transit systems, all of which can affect overall value.
Location can hold even more value than condition of the home. A plain home that needs work that’s located in a desirable part of town may be worth more to buyers than a beautiful modern home in a run-down, unsafe part of the city.
Next, you have to think about home size and usable space. In general, bigger homes positively impact valuation. Value is determined by price per square foot, and how much buyers are willing to pay per square foot can vary greatly.
Usable space also matters when determining the home’s value. In general, garages, unfinished basements and attics don’t count when it comes to usable square footage. Livable spaces such as bedrooms and bathrooms are the most highly valued. It makes sense, then, that the more beds and baths you have in your home, the better price you can get.
Age and Condition
Newer homes generally appraise at a higher value. Buyers want to see updated systems within homes, such as plumbing, electrical, roof, and appliances. They’re looking for 20-year warranties on new roofs, for example, because they know they won’t have that expense to worry about for a couple of decades. Most buyers will pay good money for a newer, move-in-ready home.
Contact Berkshire Hathaway Premier Properties for Help in Selling Your Home
With so many factors that go into pricing a home, it’s wise to partner with an experienced real estate agent who can do all the research and come up with a fair price that is likely to be well received. To connect with us, contact Berkshire Hathaway Premier Properties at 713-862-0000.