Are you planning to put your home on the market? If so, you certainly want to know how much your home is worth. After all, you want to get as much for your home as possible, but you also need to put a price tag on your home that is reasonable if you hope to generate any interest in buyers. Therefore, it is a good idea to know more about how properties are priced. This way, you will be able to intelligently discuss the asking price for your home with your agent before you put it up for sale. Here’s a look at a few of the things that are taken into consideration when determining the price of a home.
Comparable Listings and Sales
Comparable listings and sales are among the biggest factors used to determine the expected asking price of a home. Examining comparable listings and sales involves taking a closer look at similar homes that have been listed in the neighborhood over the past 6 months and seeing how much they were able to sell for. When exploring the prices of homes in your neighborhood, however, you should keep your search limited to only those homes that are located within one quarter to one half mile of your home. The only exception to this would be if your home is in a rural area or if there are only a handful of comparable homes in your area.
When looking at comparable listings, it is also important to pay close attention to the location of neighborhood dividing lines as well as physical barriers, such as freeways, major streets and railroads. Avoid comparing to homes that are separated from your neighborhood through these barriers, as these barriers can result in a significant difference in price.
You should also be sure to compare homes with a similar square footage as well as those homes with a square footage ranging from 10 percent less to 10 percent more than your home. Similarly, be certain to compare homes that are of a similar age, as the values of homes can vary significantly according to age.
Considering Homes that Have Sold
In addition to considering other homes that are currently on the market, you should also consider the prices on homes that have already sold. As you examine these homes, you should compare the original list price as well as the final sale price. It is also important to consider the number of days that the home was on the market before it sold. Be sure to adjust the prices according to variances between your home and the homes you are comparing it to, such as lot size variances or any other amenities.
Analyzing Withdrawn and Expired Listings
You can also learn quite a bit by looking at listing that were withdrawn or that expired. Take a closer look at these listings and try to find patterns that will help you determine why these homes didn’t sell. Not only can this information help you calculate the best price for your listing, it can also help you identify the modifications that you might need to make to your home in order to get it sold as quickly as possible and at the price you are looking for.
Ryan Lynch is part of the marketing team for an Austin Real Estate Company: http://www.jimolenbush.com/
They specialize in West Austin: http://www.jimolenbush.com/west-austin.htm and Lake Travis: http://www.jimolenbush.com/laketravis.htm
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