What is Your HOME Worth? - 5 Factors that Determine Value
Saturday May 01st, 2021Share
There are many factors that go into determining how much your home is worth in the current market. There are 5 main factors that affect the price that people are willing to pay.
Location is a very important factor in determining the value of your home. Your location has a huge impact on the cost of living, property taxes as well as how much you'll pay for things like school districts, crime rates. When appraisers determine the value of your home, they look at three primary indicators: location, amenities, and transportation. The quality of local schools will make a difference in property values — for instance, if high-quality public or private school options are nearby but not within walking distance it can lower an appraisal’s estimate. Employment opportunities also factor into how attractive other buyers find your house; if you work from home then this may be less important to consider. However, proximity to shopping centers is definitely worth noting since this could increase traffic on streets near where you live so that becomes more valuable real estate.
Prospective buyers compare your property against other similar homes. Buyers will perceive value based upon the homes that have sold recently and are available in the area. Supply & demand plays a large role. More supply on the market means more choice and negotiating power for the buyers. Alternatively, a low inventory of homes for sale on the market can be more advantageous for the sellers as buyers may have to compete with each other which drives up the price.
Timing is always important when it comes to selling your home, however, you can't control the current market conditions, interest rates, economy or how many other homes are on the market for sale. 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 market conditions and individual features of the property. The best thing you can do is to arm yourself with the right information and prepare for any changes in the market. One of these important pieces of homework should be to find a great real estate agent who has your back
The condition of the property affects the price, appeal & speed of the sale. Prospective buyers often make purchases based on emotion, first impressions are very important. Optimizing the physical appearance of your home will maximize the buyer’s perception of value. A property in need of repair will not stand out to those simply looking for something new and spacious, additionally, repairs cost money; and some people may not be willing to put in the work required for a fixer-upper, don't want to spend the money but usually it's because they don't want to put in the time to do it as most people are busy with their day to day lives of work and family commitments. Put your home on the map and make sure it stands out for all the right reasons
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. Understanding of your neighbourhood, location, features, 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 targeted marketing strategies - digital & traditional, advertising campaigns and exposure, 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. If you have any questions about Selling your Home feel free to contact Alex at 416-418-4910