Setting an asking price for your home is arguably one of the most challenging aspects of selling. There are many factors to consider, including: location, comparables, condition, updates, and the current state of the housing market. Our agents at The Realty Group Team are experts in these factors and keep up with market trends to ensure that your home will be priced correctly.
It can be easy to get overwhelmed when putting your home on the market, but knowing the basic factors that agents consider when pricing homes can be helpful:
Proximity to shopping, entertainment, and grocery stores are important factors to buyers and will affect the desirability of your home. The location of your home in your neighborhood also affects how it can be priced. Every buyer has their preference and may favor a home towards the end of the neighborhood rather than a home on a corner lot. Crime rate in the area is also a crucial aspect in pricing a home.
Comparables are vital to fairly pricing a home. When you decide to sell your home, your realtor will research similar properties in your area to see what they sold for. They will look for homes that are similar to yours in terms of size, style, number of bedrooms, etc. that sold within the last six months to a year. This research helps give them a ballpark estimate of what to price your home before they look at other factors.
The condition of your home will affect how much a buyer is willing to pay for it. Some buyers prefer to buy homes that are move-in ready, while others, like investors, are ok with doing some minor, or even extensive repairs. Your home’s condition will also affect its appraisal, so you may run into trouble if you price your home for more than it’s worth.
Pictured Above: You may not be able to tell, but this is one outdated kitchen. Renovated by one of our agents, Greg Bentz, he was able to significantly increase the value of this downtown home by updating it.
Certain updates may make your home more valuable. If you’re thinking of doing any updates to increase the value of your home prior to putting it on the market, be sure to discuss them with your agent. Not all updates will add value and you may lose money, as a result. There are a few simple things that you can do to make your home more appealing to buyers, like doing a deep clean. Please refer to our Curb Appeal Blog for more ideas!
Current Housing Market
The state of the current housing market is a huge factor in pricing a home. We are currently in a sellers market, meaning, there is extremely low inventory of homes and the ones that do come to market usually sell within a few days for over asking price. Selling your home in a sellers market means that you may not have to worry as much about finding a buyer, so you may be able to save money on repairs and updates. However, if the market shifted to favor buyers, you may have a harder time as there would be more options for them to choose from.
Are you looking to sell? Let us help you get top dollar for your home! Call or Text Teresa Grant (434) 546-3202 for a complimentary market analysis of your home.