How do you determine what your house is worth?
If you’re considering selling and aren’t sure how to price your home. Or you’re considering buying and want to know what to consider when offering on a home, then this video will help.
Here are a few things to consider. Size, Condition, location, marketing and negotiating. These have a huge effect on the price. Think about it: you can’t compare a home that is 2,000 sq. feet to a home that is 4,000 square feet. That would be like comparing a Maserati to a Hyundai. They just don’t match. They are not comparable.
You need to make sure you are comparing the size just like an appraiser would. In most cases, if there is enough inventory, an appraiser likes to go anywhere from about 200 to 400 square feet difference both higher or lower to use as comparables to determine pricing. If there isn’t enough inventory, they will make adjustments in their evaluation of what the home is worth based upon the difference in size.
Now let’s think about Condition. Again, think about this in relation to a car, you can’t compare a beat up old hooptie to a brand new shiny car right? Well, we have to look at a home the same way. When pricing you have to look at things like, how upgraded is your home. How modern is it? What is the landscaping like? Are you in a great location close to freeways and shopping? How does your area, compare to others, are there any nuisances like power poles, heavy traffic, or anything else that could be undesirable?
To learn more about how important marketing is, watch the video on marketing your home. Remember, when pricing, it’s natural to feel like your home is worth more than everyone else’s because we have an emotional attachment to it. But you’ve got to look at all the variables because underpricing your home will cause you to lose money and so will overpricing your home.