What Factors Affect Your Home’s Price — And What Doesn’t
What Does Affect Price?
Location
Homes in more desirable neighborhoods, homes closer to shopping and entertainment, or homes that come with additional community amenities, command higher prices.
Market
The performance of the market has an impact on pricing – such as current home inventory and interest rates.
Condition
Homes in the best condition with the most up-to-date amenities bring a higher price than a dated home or one with standard amenities.
Terms
Your terms can affect how your home is priced. How soon you can move, whether or not you will make repairs, if you’re offering a home warranty, and more can make a difference.
What Does NOT Affect Price?
Cost
What you paid for your home makes no difference.
Proceeds
How much you need to net from the sale makes no difference.
Collateral
How much you owe on your property makes no difference.
Opinion
What you or anyone else thinks it’s worth makes no difference.
Why Proper Pricing Matters When Selling Your Home
Benefits of Proper Pricing
Faster Sale
When your home is priced correctly, you will succeed in targeting the correct buyer.
Less Inconvenience
Properly priced homes are on the market for less time, meaning fewer showing disruptions.
Increased Agent Exposure
Agents are excited to show properly priced homes.
Increased Prospect Exposure
Your home will see more buyers in the correct price range.
Higher Offers
More interest creates more offers and bidding wars.
Drawbacks of Overpricing
reduces activity
Fewer buyers will want to see an overpriced home.
Longer on the Market
An overpiced home tends to sit on the market longer.
Affects Perceived Value
Buyers will expect more from your home than it offers.
Helps Competition
Overpriced homes make other homes look like better deals.
Presents Appraisal Hurdles
Overpriced homes may exceed appraised value and could ruin a deal.