A home’s value consists of many factors. Not only does it provide shelter and a place to relax, it also stores memories. These are the priceless values of your home. But when time comes to sell, you have to come up with a listing price that reflects market value, not sentimental value. You don’t want to sell too low, but pricing the house too high is also to be avoided.
Location is a key factor in the price most buyers will consider paying for a house. The city you live in and your location within that city are important considerations. A suburban or country home will probably sell for less than one located in an urban area. Within the city, though, there are more desirable and less desirable places. Your home’s price will reflect that.
How do you figure out a listing price? First, consider the location, square footage of you home and the number of bathrooms and bedrooms. What sort of view do you have? Is the home on a cul de sac (most popular for families with children) or a corner lot (usually a larger plot of land)? Is it close to public transportation? What school district is it in? What is the neighborhood like? Is the yard landscaped? Do you have shade trees?
You also need to take into account the condition of the home. Is the roof in good shape? Are there any structural problems? What kind of heating and cooling system do you have? What other features make the home more attractive, such as molding, architectural design, garage, pool, kitchen upgrades, a basement, cabinets, appliances, and closet space?
Is your home a “cream puff?” This translates into easily sold. A cream puff would be in top condition and have excellent sidewalk appeal. The interior has charm and appliances are newer models in excellent shape. It is clean and well organized and has plenty of storage space. It has a lot of extras such as a well landscaped yard, shade trees, an attached garage, and perhaps a swimming pool that is perfectly maintained.
Another factor to consider is the number of comparable listings on the market. The fewer the listings, the more valuable your home in terms of resale price. If you work with a real estate agent, this person will have a good idea what the market is currently like, and a good range for your listing price.
Don’t assume that making improvements in your home will add to its dollar value. A pool rarely if ever adds enough to the price of a home to justify its cost. The same is true of many remodeling projects. However, if simple things need to be done like a fresh coat of paint for the living room, this will improve the marketability and asking price of you house. Also keep things put away. You don’t want the home to be so cluttered that it doesn’t seem to have adequate storage space.
Your real estate agent may have a few suggestions to improve the marketability of the house. Carefully consider what she has to say, and do those things that make sense to you. Simple, inexpensive measures to improve the attractiveness of the home can pay big dividends.
Finally, consider your personal situation. Do you need to sell quickly because of financial constraints or to take a job that necessitates moving? Do you have plenty of time so you can wait for the right buyer? A house that is on the market too long will seem to be overpriced, whether it is or not. If you are not in a hurry to sell, it may be a good idea to test the waters but remove the home from the market if you don’t find the right buyer within a few months. In a year or so, you can try again.
References and further information:
http://ts.realestate.com/blogs/tipsandtools/archive/2007/02/06/determine-your-home-s-value.aspx
http://ts.realestate.com/blogs/tipsandtools/archive/2007/02/06/determine-your-home-s-value.aspx