One of the hardest parts of putting your home on the market is determining how much the property is worth. Pricing your home properly is essential. If you set the price too high you risk having the home sit on the market for months while strangers troop through open house after open house. If you price the home too low, you will get a quick sale, but you will also miss out on thousands of extra dollars in profit.
Determining a fair price for your home means looking at a number of factors and taking a number of things into consideration. Here are 5 of the top considerations for valuing your home.
#1. The Size of the Lot
The size of the lot is a big consideration for buyers. If your home includes a larger than average lot or additional acreage, be sure the brochures and other marketing materials prominently highlight that fact.
A large lot means a big back yard for growing families, and space to move around for young couples. All other things being equal, a home with a large lot will fetch more than a similar one with a smaller lot.
#2. The Condition of the Home
The condition of the home will obviously have a large impact on its value. If your home needs a lot of repairs, you will need to take that into consideration when setting a price. Sometimes it is worth spending a few thousand dollars on repairs and upgrades in exchange for a higher asking price.
Likewise, a home in excellent condition will likely fetch a higher price, so make sure the Realtor® knows about any recent upgrades or renovations. Things like a new roof, a remodeled kitchen or bathroom and an updating heating and air conditioning system can make the home more sellable and increase its resale value.
#3. The Presence of Desirable Amenities
If your home is packed with amenities buyers crave, you can probably get a premium price when you put the house on the market. Some of these in-demand amenities include granite countertops, stainless steel appliances, steam showers, hot tubs and extra storage.
If you are selling an older home, making a few strategic upgrades now could boost the sale price substantially. Just research the cost of the upgrade and compare it to the increase in resale value that could result.
#4. Comparable Sales
Knowing what other homes in your area have sold for is essential, and a great way to accurately value your home. You can use a number of online resources to check the sale prices of neighboring properties, but your real estate agent will have access to even more information. Always ask your Realtor® to check comparable sales, and keep checking those sales as you set the asking price.
#5. The Current Real Estate Market
This one is out of your control, but it is still important. The current state of the real estate market will have a profound impact on home prices, and you should take it into consideration when pricing your home.
If you are lucky enough to be selling in a hot market, you will probably be able to fetch top dollar for your home. If the marketing is softening, or worse yet, collapsing, you may need to adjust the price lower to attract a qualified buyer.