By Colin Johnson
Do you know how much your home is worth? This can be a confusing question for many people. We know that selling a home can be a frustrating process, and choosing the right price may be the most important step to selling your home.
Pricing your home properly is the deciding factor on how long it will take to sell. Pricing it too low means that you can leave thousands of dollars on the table, and it will often sell too quickly. Pricing it too high means it sits on the market, forcing your to drive the price down. That's why it is important to get the price right the first time.
Here are three things that we consider when pricing a home.
1. Its Location
Imagine two identical homes that cost $200,000 to build. These homes could still have two very different sales prices, depending on where they are. The value of the home is only one part of its price, the value of the property itself is just as important.
One house overlooks a beautiful lake, surrounded by mountains, in a great school district, and only minutes away from a lovely town. The other is next door to a chemical refinery plant, which drains all of its waste into the backyard. Which house do you think will be more expensive?
2. Neighborhood Comps
The location brings us to the second factor that we consider- the neighborhood. In order to get a good idea of how good your location is, look at other homes in your specific neighborhood.
This is a great way to get hyper-local and really understand how valuable your location is. Look at homes in the same neighborhood with a similar number of bedrooms and bathrooms. This is great way to get an idea of your home's value.
3. The House Itself
After you find neighborhood comps, we figure out if the house should be above or below that value. If your home is recently remodeled, has a great kitchen or master suite, or any other attractive features, we can price it above similar homes in your neighborhood. But if your home needs repair, has foundational issues, or is out of date, it may not be worth what other homes are in your neighborhood.
At the end of the day, your home is only worth what someone else is willing to pay for it. That's why it is important to have a good realtor to price your home and handle the negotiations, so you can get the most value out of your home.
Want a free and fair home evaluation?
I'm here to help. I've been working in the Tri-Cities for almost two decades, so I know this area well. Click below to call me or send me an email, and I will give you a free and fair price estimate for your home.