When you’re selling your home, you will need to determine how much money your house is worth before listing it on the market. What your house is worth is affected by several different factors that I’ve outlined below.
Where your home is located has a huge impact on its market value. Is it near public transportation, shopping malls, restaurants and quality schools? Does the area have a strong sense of community? Some buyers approach home buying in terms of the quality of the community and the types of activities that happen within it, including the reputation of the school districts within it.
- Size and Layout
Some styles of homes are more popular with buyers than others. Previously, homes with lots of square footage were hot sellers but recently the trend has gone towards smaller homes with open space layouts that make the house feel larger. Smaller homes also come with less upkeep than larger ones, which is something that appeals to a lot of people.
- Home Improvements
If you’ve completed home renovations to help increase the value of your home (and avoided the renovations that don’t add value), it can increase your home’s resale value. It’s also important to keep your home on par with other homes in the neighborhood, since vastly over-improving it can actually hurt your home’s value.
One of the most obvious factors that determine your home’s worth is the condition that it’s in. Homes that have been well-maintained will sell for more than homes that have been neglected and poorly kept. Things like paint, ceilings, floors, plumbing and electrical all factor into a home’s current condition.
- Negative Stigmas
Your home could have some bad voodoo that’s affecting the value. Things like crime, death, floods, or fires that took place in the house could keep buyers from showing interest.
- Market Conditions
Regardless of the condition of your home or how many perfect finishing touches you’ve put on it, market conditions are one of the largest factors that determine how much your house will sell for. If the market is flooded with similar homes of similar prices, it’s going to be harder to sell.
- Price of Your Home
It might seem counterintuitive, but the initial price you list your home for can affect how much money it will yield. It’s so important to price your house right from day one because the first 2-3 weeks when it’s on the market is when it has the most draw. If you alienate a segment of buyers from day one who think your home is overpriced, they will buy elsewhere and you might find yourself reducing the price to get it sold. And the end of the day your house is only worth what people are willing to pay for it.
There are many factors that come into play when you set out to figure out how much your house is worth. Each of the factors above has its own intricacies that need to be considered for your specific house. If you’ve considered the above and are looking for an accurate estimate of what your house is worth, I can provide a free home evaluation or you. This free home evaluation comes with no obligation and will give you a lot of great insight on how your house should be properly priced before listing it for sale.
Please contact me for more information or fill out my home evaluation form to get yours done today!Posted by Greg Dewar on