You’ve thought of selling your house, and you know the price that you have in mind to sell for, but you aren’t sure if the price is realistic! What factors determine your homes value? Is it something that you have any control of? Whether you are thinking of selling traditionally or selling to a cash buyer we have compiled a small list of contributing determinants.
The Local Market
If your home has all the ideal upgrades but there is a large number of homes for sale in your area, and only a handful of buyers you are looking at what is called a buyers market, which could impact what your home can sell for. Inversely, if your home is one of a handful of homes for sale and there are a great deal of potential buyers, you are looking at what is called a sellers market, which of course is the optimal condition to be selling a home. When you are in a sellers market, you can not only expect that your home will be more “valuable” the listing can likely become very competitive for potential buyers.
Neighborhood Comps
Potential cash buyers and even traditional real estate agents will gauge the value of your home by looking at house in the same area, that are relatively the same size and condition, with similar upgrades. Lenders will likely need a report that shows the appraisal to approve mortgages for traditional buyers. Neighborhood Comparisons play a huge role in determining value.
Location
Location, Location, Location, it is quite true what they say- even though you bought your house because it was conducive to your personal life, whether it be a short commute to work or not far from extended family, it may not be ideal in terms of appraisal. Factors that determine prime location can include proximity to public transit, shopping and general entertainment. The overall rating of schools in the neighborhood and even the closeness to major highways can ALL impact the value of your home.
To be fair we realize these are not factors in which you have much control over, especially if you have lived in a house for a long time and are now deciding to sell. However, understanding what impacts the value of your home will help with realistic standards and ultimately an easy and quick sale of your home.