Pricing your home can be a challenge especially when there are so many factors to take into consideration. Price too high and your home may linger on the market. Price too low and you may be leaving a lot of money on the table. Working with a professional who knows the ins and outs of pricing in your neighborhood can save you time, money and a lot of headaches. Here are the following top five factors agents look at when pricing your home:
Prime locations are often priced higher than developing neighborhoods. Your real estate agent will evaluate comparable homes that have recently sold in the neighborhood to make sure yours is priced correctly. Remember to compare homes that have recently sold, and not properties that are still on the market.
Location, location, location. Proximity to transport options, restaurants, entertainment venues and parks may make your home more desirable and could instantly add value. Details count—having a shorter walk to the train often has a positive effect on your daily commute as less time is spent in inclement weather. Bustling restaurants, movies and theaters within walking distance means less traveling time (even more convenient if you have out-of-town friends and family visiting for a weekend). Parks within minutes from your residence offer a convenient escape for evenings and weekends. Don’t get too close though, being right above a busy eatery generally does not fetch a higher asking price.
Upgrades and the quality of materials used will likely increase your selling price. Homeowners might believe that all updates and renovations will automatically raise their asking price, but some fixer-upper decisions such as new bathrooms and kitchens are often more in-demand than others. Niche styles beware—eclectic tastes could have a more dampening effect than widely accepted neutral finishes.
Consider the state of the market when deciding whether it is a good time to sell your home and maximize its value. Whether it’s a buyer’s market, a seller’s market, or neither, each could have a different outcome on your asking price. Your agent can help you figure out what kind of market you are looking to sell in, and what, if any, adjustments should be made to get the most out of your home.
The number of bedrooms, bathrooms and square footage all count. But bigger isn’t always better—layout and the above factors are also taken into account to get an overall accurate price. Sometimes homes with open floorpans may feel larger than their competitors with more square footage.