How much is your Home worth? How to Determine the value of your home
Tuesday Jan 26th, 2021
There are many factors that go into determining how much your home is worth but here are the 5 main factors that affect the price that people are willing to pay in the current market.
Location is a very important factor in determining the value of your home
Prospective buyers compare your property against competing properties. Buyers will perceive value based upon the properties that have sold or are available in the area.
Property values are affected by the current real estate market. As the real estate market cannot be manipulated, a flexible marketing plan should be developed which analyzes the current marketing conditions and individual features of the property.
The condition of the property affects the price and speed
of the sale. As prospective buyers often make purchases based on emotion, first impressions are important. Optimizing the physical appearance of your home will maximize the buyer’s perception of value.
Pricing your home properly from the very beginning is an important factor in determining the length of time it will take to sell your home. I use a detailed system of checks and balances to determine the correct price.
This involves 4 steps:
1. Thorough understanding of your neighbourhood, your location in your community, and your community amenities.
2. Research recently sold homes and their final selling prices.
3. Research currently listed homes and their asking prices.
4. Analysis to differentiate these homes from yours and make relevant price adjustments.
Once we use this formula to set the price of your home, we continue to monitor the market. The fourth step is an ongoing procedure as market trends can shift and affect your home’s positioning.
Pricing in combination with marketing strategies, ongoing advertising campaigns and exposure, incoming calls fielded quickly and accurately, open houses and plenty of showings combine to create a swift and efficient sale of your home. Our goal is ultimately to achieve the highest selling price possible for your home in the most reasonable amount of time.
3 Risks of overpricing your home
1) You won’t attract offers without leaving room for negotiations.
If a buyer views your property, they might not make an offer if negotiations won’t bring them within an acceptable price range. Also, reasonable offers will seem too “low ball” and the buyer might not insult you with one.
2) A long period on the market will leave buyers wary.
As the home doesn’t sell due to its overpriced status, buyers will be convinced there are other defects or reasons the home hasn’t sold. Statistically, the longer a home is on the market, the greater the likelihood low ball offers will be received.
3) You will miss the burst of initial market activity.
When a new home enters the market, a great number of buyers receive an immediate email. Homes priced beyond their range, or the expected range of the neighbourhood, will miss the initial flurry and those potential buyers.