The Top 3 Factors That Determine Your Home's Listing Price
No one knows our homes like we do—the carefully chosen paint colors, the effort that went into planting your perennial garden, the special glow cast by the late afternoon sun in your family room. All of these factors and many more contributed to making your home the uniquely amazing place that it is.
When it comes time to put your home up for sale, however, all those details you love about your home probably won’t factor into the price it will be listed for on the market. Here are the three biggest considerations that do go into choosing the right price for your home:
- The state of the market. Listing prices are largely determined by the state of the local housing market and the national economy. Macro and micro economic trends contribute to what homes are selling for in your neighborhood, and in order to properly price your home, the average sales price in your area will be taken into consideration. Your REALTOR will also look at the average number of days for-sale homes are on the market before selling. All of this data is critical to pricing your home at the highest possible price while getting it sold as quickly as possible.
- The details. While the intangible aspects of living in your home may be priceless to you, the factors that go into determining its sales price are all about key data points. For starters, your REALTOR will look at comparable homes in your area to determine what they sold for. Your home will be compared to those similar in square footage, lot size and the number of bedrooms and bathrooms. It’s critical that your home price be in a relatively similar price range.
- The location. You’ve most likely heard that real estate is all about location. This adage remains true as the town, neighborhood and even the street your home is located on plays a huge factor in its desirability. You might not have the newest or largest home, but if it’s in a highly desirable location, you’ll be able to use that to increase the listing price. Other factors about your area, such as the proximity to good schools, walkability, public transportation, access to recreation and culture can also be a boon to your home’s sales value.
Understanding these main components that go into determining your home’s price will help you work with your REALTOR to come up with a number that satisfies your financial goals while getting your home sold in as timely a manner as possible.