How Do You Determine the Value of Your Home?
How do you determine what your home is worth? Are you considering selling and aren’t sure how to price? Are you considering buying and want to know what to consider when offering on a home? Then this video is exactly what you need.
Hi, my name is Paula Quinn and I am with RE/MAX Central. I have lived here in Central Minnesota my entire life, and I know exactly how to price homes. Here are a few things to consider.
Size, condition, location, location, location, lots of marketing, and of course negotiating. All of these have a huge effect on the price that you might get for your home. And think about it, you can’t compare a home that’s 900 square feet to a home that’s 4,000 square feet. That’d be like comparing a Hyundai to a Maserati. They just don’t match. They are not comparable. I make sure that I am comparing the size just like an appraiser would. In most cases, if there is enough inventory an appraiser likes to go anywhere from 200 to 400 square feet difference at most, both higher or lower, to use as those comparables when pricing. If there isn’t enough inventory, those same appraisers will make an adjustment in their evaluation of what the home is worth based upon the difference in price and size.
Now, let’s think about condition. Again, think about this in relation to a car. You can’t compare an old beater with a brand new shiny car still on the showroom floor, right? Well, a house is the same way. When you are pricing, you have to look at things objectively, like how upgraded is your home? What does the flooring look like? How modern is it? Is the kitchen updated? What does the landscaping look like when people pull up? Big ones, like the condition of your shingles and the age of your furnace or your air conditioner.
For location, location, location, location, are you in a great location close to freeways and shopping? What are the schools like? Is your home on a lake or a river? How does your area compare to others? Do you have run-down shacks on either side of you? Are there nuisances like heavy traffic, an active train track, or big huge power poles or anything else that would be considered undesirable to a buyer?
How much marketing, the type of marketing, where you market, and who you market to also make a huge difference in what you can price at. Watch for the video coming in the future talking about that big topic of making sure you have a strategic and comprehensive marketing plan. And remember, when pricing it’s natural to feel like your home is worth more than anyone else’s. I’m the same way, because we have that emotional attachment to it. But you have to try and be objective and look at all the variables because underpricing will cause you to lose money, and often overpricing will cost you not only money, but it’ll cost you time as well. Pricing your home correctly is the best way to sell faster and for more money. I can give you all kinds of examples.
Call me to help you navigate all the variables to come up with the best pricing for your home. Creating a tradition of trust, your realtor for life. Paula Quinn, RE/MAX Central. See you later.
How Do You Determine the Value of Your Home