Calculating Home Value:
How to Set a Reasonable Price
for Your Home According to Value
home equity articles and tips
Are you currently trying to sell your home? If so, then you may be wondering how to calculate your home's value. Obviously, you want to get the most money out of the home as possible, but you also need to set a price that will attract buyers. If you price the home too high, he property could sit on the market for much longer than you'd like. If the price is too low, some buyer will get a steal of a deal while you miss out on money that you deserve.
There are a few ways you can set a reasonable price for your home according to value, if you know what attributes equate to value. If you set your price based on the value of your home, you'll be able to honestly validate your asking price when negotiating with buyers. To get a few ideas about what contributes to the value of your home, read on for a little help.
The Comps Are King
The single most important thing that affects your home's value is the comps in your own neighborhood. You can access city or county records to find out how much similar homes in your neighborhood have sold for recently. This will give you the best idea of your home's worth or value as buyers are not likely to pay more for your home than other buyers paid to get into your neighborhood even if you believe your house of far superior to others.
Check the Exterior and Yard
The exterior of your home and the yard can either positively or negatively impact its worth. A dated exterior, a small yard or a busy street out front will negatively impact your home's value. On the other hand, you can get top dollar if your home has a lot of curb appeal or has a large yard. Your home might also be worth more if you have outdoor entertaining spaces like a deck or patio.
Upgrades Impact Price
If you have spent money on updates or upgrades, your home may be worth more than the comps in your neighborhood, but don't expect to get back all of the money you spent on them. You can expect to see a return on your investment if the upgrades were in the kitchen and bathrooms as savvy buyers expect these areas to be updated and modern.
Needed Repairs Affect the Bottom Line
If your home is in need of repairs, even if they are minor, this will affect the price you can reasonably expect to get for your home. Buyers will use those repairs against you during the negotiation process to get the purchase price lowered. You are much better off having the repairs done, so buyers can't use the repairs against you.
Neutral Appeals to Buyers
Your home has more value if it has a neutral décor. Neutral décor appeals to buyers, so they are more likely to want to purchase your home above the others on the market. You will not get a reasonable price for your home if buyers think they need to repaint or redecorate to make the house livable.
When setting a reasonable price for your home, start by checking the comps in your area. Then, adjust according to the factors discussed here to set a reasonable price for your home. If you need help from a realtor or home inspector to set the perfect price, don't be afraid to reach out and ask questions. Getting advice from the pros will help your home sell quicker, and at a price that you and the buyer can both be happy with.
AUTHOR BIO: This article was written by Dixie Somers, a freelance writer who loves to write about business, finance, women's interests, and the home niches. She lives in Arizona with her husband and three beautiful daughters. Dixie got her information for this article from the professionals of Pest Detective who specialize in pest control in Victoria, BC. They suggest that you hire a home inspector to help you check the interior and exterior of the home in order to properly price the property.
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