Five factors to consider when determining how much your home is worth.
Home sellers often ask us for comps to gauge their property’s value, but determining your property’s worth goes beyond just comparing similar properties. Today, we’ll share the factors that contribute to determining your home’s value:
1. Comps: Recent sales in the area provide a solid starting point, as they reflect what buyers have previously been willing to pay for homes in the neighborhood.
2. Showability: What does your home look like when somebody walks in? Is it cluttered? Is it move-in ready? Does it look like a model home? The bottom line is that buyers buy homes based on emotion. The higher the emotional connection, the higher the offer will be. The lower the emotional connection, the lower the offer will be, or worse, no offer at all.
“Determining your property’s worth goes beyond just comparing similar properties.”
3. Pricing: You can price your home high, at market value, or even aggressively to get multiple offers and create a bidding frenzy. How you price your home determines the exposure your home gets, how many eyeballs are on your home, and how many buyers walk in.
4. Competition: Demand matters when it comes to sales. If your home is in a neighborhood with 10 active homes available for sale, demand is going to be lower compared to an area that has maybe zero to three homes available for sale. So when we’re looking at determining value, we’re also looking at what our competition looks like.
5. Market trends: Sometimes, the market is very dynamic. Three months ago might be a very different market than the one we’re dealing with today. So when we’re talking to a homeowner, and they’re wondering what the value of their home is, we need to understand when they want to put their home on the market.
If you have any questions about determining the value of your home, call or email us. We’d love to hear from you.