What are a few things that impact your homes value/sale price that many people don’t realize? When you decide to sell your home and find yourself tasked with pricing the place you hold so dear, how do you do it right? There are a few things to do, and a few things to stay away from when putting your home on the market.
The best thing to do first is hire a professional Real Estate Agent (that’s where I come in) and ask for a CMA (comparative market analysis) for your home. I will do extensive research using the local MLS and tax records to find a price that similar homes have sold for in the recent past. This is done by comparing your homes size/beds/baths/age and neighborhood to see what you could expect to sell your home for. For some particular homes, it may be beneficial to hire a professional appraiser as well. Remember, sometimes your home doesn’t compare to that house down the street. They must have similar amenities and features, and be in similar condition to be truly comparable. They may be in the same neighborhood, but your neighbor might have a brand new kitchen and bathroom, plus be 30% larger.
The number of bedrooms in particular is a key factor in selecting comparable sales. Kellogg says appraisers aim to compare prices of homes with the same number of bedrooms because that detail changes what the potential buyer is willing to pay.
At the end of the day, your home is worth as much as someone else will pay for it – and it’s an agents (appraisers) job to estimate what that value could be. The market value is what a prospective buyer is willing to pay for the subject property.
Here are a few things to insure your home has the highest return on investment as possible. Some things to expect, and some things you can’t control.
1: Dont Go overboard with upgrades! Never “over build” for your neighborhood. If homes in your area are selling for $350,000-$400,000, adding $150k in upgrades is a sure fire way to not get back any return on your investment.
Updates and added amenities can be a great way to increase the value of your home. Many subdivisions with homes that are similar will often sell within a 20 percent price range of each other, depending on the age of the homes and renovations. The improvement choices should be based on those of similar homes in the area.
Fix Things Up
A new coat of paint and tidying up around the property can go a long way. Any real estate professional will encourage you to make your home clean and clutter free, both inside and out, before potential buyers start touring.
If you’re looking to make an improvement that will help make buyers value your home more, new flooring can be one of the easier, relatively cost-effective repairs that you can do.
Get the Neighbors to Help
To draw more interest and potential bids, ask your neighbors to park in their driveway, which will make the street less crowded. The fewer cars parked on the street in a subdivision, the better for any homes on the market.
It’s only a slight inconvenience but the neighbors will benefit in the long run. As a neighbor, you want the person who’s moving to sell their home for the highest (price) the market will bear because that affects their real estate value indirectly.
Don’t list your home for an exagerrated asking price. While a seller can still sell the home or put the home on the market for what they believe the value is, just keep in mind that it’s not easy to pass off a home for more than it’s worth. The appraised value reflects what people would be willing to pay, and it can be hard to find an outlier who will pay significantly more. In the end, while an overpriced home sits on the market, it is costing the seller money every month and eating away at potential buyers who would otherwise be excited to put in an offer.
Things you can’t control that may drag down your home value.
Are Planes, Trains and Cars zooming past your bedroom window? There are a lot of things you can control when it comes to ensuring at least a certain value in your home, but some are outside your reach – and outside your property lines.
While a lake or pond can add value to a home, property backing up to a busy road, airport or power line is typically less desirable. If you have a highway or a railroad, that’s not conducive to a good sales price. But that’s the exterior stuff you can’t do anything about. If your comparable properties are in a quiet area, your value may be less in comparison.
The first step in the process is to contact me!
I will be happy to provide you with a complimentary CMA to see what your home is worth in this crazy Bellingham (Whatcom Co) housing market. From there we can narrow down an exact asking price and go over my “Ultimate Guide to Selling Your Home” PDF that will have many more tips and advice on selling your home for the highest price, in the shortest amount of time!
I look forward to hearing from you soon!
Leave a Reply