As you’re getting ready to sell your home, price is usually one of the first things that comes to mind. You’ll probably start to ask yourself some questions. How much is my home worth? Is my home one of the more superior homes in the neighborhood? Today, I’ll be talking about the three most important factors you should consider when determining the value of your home.
So before we talk about the three ways to determine the price of your home, I wanted to touch upon price a little bit more generally. So how we determine the price obviously is three things I’m going to be talking about but most importantly we’re going to be comparing your home to similar homes in your area and in your neighborhood or right outside of it for the most part. And that are active on the market now or have sold within the last three to six months normally. Sometimes, we’ll have to look out past six months, maybe nine to twelve months or look out farther than just your subdivision based on where you live. But in figuring out that price, it is imperative that you price your house right right from the beginning and here’s why.
Generally speaking, statistics prove that the first few weeks that your home is on the market is when you’re going to get the most traffic through your home. So you need to capitalize on that traffic so that you can net yourself the most amount of money possible. So let’s talk about the three ways to determine the price of your home.
#1 Condition
What’s the condition of your home? Do you have a home that is immaculate and pristine and you just put a brand new kitchen with granite countertops and custom cabinetry and a tile backsplash? Or does your house need a little bit of updating? You need to maybe replace a room with new carpet, stuff like that. All that kind of stuff takes into account because you’re going to be compared again to other homes that have sold in your neighborhood. So if a home sold, for example, at $450,000 in your neighborhood and had all the bells and whistles well if you have a home that needs a lot of updating, new floors, the chances of you listing your home at 450k and selling is probably not very good.
#2 Location
I know you’ve heard this a million times location location location, but it’s super true. If you have a house thats on a cul-de-sac that backs up to nothing with a ton of privacy it’s going to probably command a higher price than something that backs up to a main road or a commercial building. So again, these are all the things that you have to take into account.
#3 Competition
What’s the competition like for your house in your neighborhood or around your neighborhood? Are there zero houses that are similar to your listed in your neighborhood, or are there seven? Right? We have to take that into account because if there’s zero, our price might go up a little bit. But if they’re seven, we got to be a little bit more creative right? So, if you have a home that’s listed for $500,000 currently in your subdivision and it has all the bells and whistles and your home doesn’t have all that stuff, you probably don’t want to list it at $500,000. I like to use the MacBook analogy with my clients. If two people can buy a MacBook Pro for the same exact price except for one of them comes with a three year warranty, the new air pods, and Microsoft Office, which one are you going to pick? And that’s the same for buying a new home. If there’s two houses that are exactly the same but one gives you a little bit more features and amenities, you’re probably going to pick that one. So again, at the end of the day, its about winning. You want the buyers out there to pick your home over everybody else’s. So those are the three ways to determine the value of your home. One last thing I’ll say is if you know you’re going to be selling your house this year, or you’re thinking about selling your house this year, don’t wait until two weeks prior to get in touch with me. Get in touch with me now so that we can have a plan to put together, whether that’s repairs or just getting your home ready to market now so that when you are ready to actually sell, there are no delays or hiccups.
Do you know how much your home’s worth? If not, click HERE and I’d be happy to give you a free, no obligation home analysis.
About the Author: This article was provided by Daniel Naurato. Daniel is a realtor in Metro Detroit and a leader in the field of real estate marketing. If you are in the market to Buy or Sell a home in Metro Detroit, he can be reached at NauratoRealEstate@gmail.com I have a real passion for helping people buy and sell homes in Michigan. I primarily serve the following areas: Northville, Novi, Plymouth, Livonia, Canton, South Lyon, Farmington Hills, and Birmingham.
