While home sellers hope to get top dollar for their property – and some have an inflated idea of what to expect – establishing a home’s value can be a complex, multifaceted process.
Often times, Sellers will wonder why their home isn’t selling as fast as the one down the street did. Sometimes it’s just timing…the right buyer was looking at the right time and found the perfect home. But at the end of the day pricing it too high will completely negate all of the following items, so be sure to let us help you price it right to begin to begin with.
Location
Location includes factors such as the price of recent nearby transactions and commuting times. Does it have a view? Is it near retail establishments or a highway? Also, Buyers increasingly value the sense of community where they’re buying. How interactive are the neighbors and are there regular local events that are of interest?
Size and layout
While homebuyers used to swoon over ample square footage, many have fallen out of love with the McMansion. There’s a lot more involved with taking care of these huge houses. Layout is a key factor because an open-concept design can look much more spacious than a boxy space of the same size. The number of bedrooms also influences a home’s value. However, adding a small bedroom in the existing space will take away value. Fewer, but larger bedrooms tend to boost value.
Age and Condition
Historic homes (assuming they’re livable and well-maintained) and newer homes are typically more valuable than homes built somewhere in the middle. Age aside, condition matters too. Someone will pay $15k+ more for a well-kept house that’s move-in ready than they will for a house that needs $5k-10k worth of work.
Upgrades
Renovations play into a home’s value, but if your home is considered ‘Over improved’ compared with other properties in the neighborhood, you may not get your investment back. Visit neighbors’ homes or open houses to see what people have done [before undertaking big improvements]. You could also hire an appraiser to prepare a feasibility analysis that will help you determine the impact of renovations on your home’s value.
Unless you live in an area where high-end appliances or built-in wine fridges are the norm, you might be better off saving the money and choosing other upgrades. You could be spending a lot of money on something that might have a lot of personal taste attached to it.
However, you should keep records of repairs and upgrades to show potential buyers that the home has been well-maintained.
Negative events
If your property has issues like mold or experienced a fire or was the site of a violent crime, it could be a harder sell – and command a lower price. Federal law requires the disclosure of all known lead-based paints, but state laws vary in whether the seller must disclose issues related to natural disasters or crimes committed on the property.
