Finding The Golden Number: THESE Are The Factors Affecting Your Home Sale Price
Photo by Tierra Mallorca
Projections indicate that in 2021, we’re going to see a strong seller’s market. Oftentimes, that spells better prices for sellers and increased competition for buyers.
That being said, listing your home in a seller’s market doesn’t automatically lead to an exceptionally high home sale price. There are plenty of factors in play that can affect your home’s current market value.
At Dean Miller Real Estate, we work hard to ensure that our sellers walk away with more than enough money to dive into their next big adventure. To give you a taste of our expertise, we’re going to take a look at one of the key aspects of getting your home ready for the market.
Read on to learn the six factors to consider when pricing your home for sale.
1. The Sale History Of Your Home
Everyone from the buyer’s agent to the appraiser is going to want to start by examining the sale history of your home. It only makes sense that you should start there, too!
Depending on the age of your home, you may not need to go back to the very beginning. Home prices have gone up at a fairly steady pace over the years, and what your home cost fifty or sixty years ago won’t reflect inflation or the changing real estate market.
However, you should take a look at the last two sales of your property and get a base number. We like to start with those numbers and assess any changes you’ve made to the property or changes in the area. That will give us a better sense of how much your property has appreciated since the last sale.
2. Your Local Area
Where you live has a lot to do with how much your home costs. Some areas have higher property values than others because they possess desirable qualities. From the quality of the local schools to the crime rate, just about every external factor comes into play.
One thing we expect will play a large role in future home sale prices is the job market. If you live in an area with plenty of thriving industries and a strong job market, that’s going to boost your home sale price.
3. The Current Market
As we mentioned earlier, there can be a significant difference between selling your home in a seller’s market versus a buyer’s market. If there’s low supply and high demand (the qualities that make up a seller’s market), you’re going to be able to keep your asking price high.
Selling in a buyer’s market doesn’t always mean that you’re going to have to drop your asking price. If a buyer’s market coincides with a strong national economy, you may still see some advantages as a seller.
4. Square Footage And Desirability
It may stand to reason that a larger house is worth more money. As long as that house is in good condition, that’s often the case.
However, desirability (or appeal) is also going to have a big impact on your home sale price. The reality is that while large, well-maintained homes can satisfy plenty of the needs of a buyer, it may not fit the style that people are currently looking for.
For example, we’ve seen gravitation towards homes with a natural flow and open floorplan. If your house has a ton of square footage but not all of that space is usable or the home is split up in an older or unusual fashion, it may not sell for as much as you are expecting.
5. Age And Condition
Newer homes have a tendency to sell for more simply because they require less maintenance. However, whether your home is new or old, the condition you’re leaving it in will make a greater impact on the price than the age.
When we talk about condition, we’re often referring to both maintenance and remodeling. Maintenance refers to general upkeep, meaning that you’ve addressed structural problems as they’ve arisen rather than letting them get worse. Remodeling is a bit more involved and the goal is to ensure that a house is both appealing and modern.
Remember that when you’re choosing any pre-sale remodeling projects, they are not evenly weighted. Make sure you know the difference between break-even remodels, remodels with a good ROI, and remodels that will actually cause you to lose money.
6. Amenities Both In And Around Your Home
The amenities we’re talking about here are generally encompassed by the assessment of your neighborhood as well as the assessment of your home’s condition and desirability. However, we think it’s important to get a little more specific.
Desirable amenities in your home include things like new appliances, central cooling and heating, and enclosed garages. One assumption is that swimming pools are also desirable amenities. The reality is that swimming pools can be a help or a hindrance when pricing your home, as some buyers don’t want to deal with the cost and maintenance of owning a pool.
Desirable amenities around your home refer to the nearby features buyers will enjoy. This can include public parks, libraries, grocery stores, gyms, and more. If any of these things are within walking distance, it’s even better!
Set The Right Home Sale Price For Success
Whether you’re getting ready to list your home in our current seller’s market or the tides have turned, you want to think long and hard about your home sale price. Listing your home at a price that is too low or too high can lead to issues down the line. That’s why we’re here to make sure that you know everything you need to know before you list your home.
To find out more about our services and how we can help you get the highest bid for your home, contact us today. We know Nassau County like the back of our hand and have years of expertise to bring to your home selling process.