Overpricing your home can hurt your chances of selling, so we’re taking a look at the most important factors in establishing a fair and accurate value
If you’re considering selling your home, the most important factor is how much it’s actually worth. It’s not uncommon for homeowners to overvalue their property. “Mine is much nicer than the neighbors” or “there is nothing for sale in this neighborhood.”
According to an article in the Sun Sentinel last fall, sellers tend to miscalculate their home’s value and falsely assume that a shortage of inventory translates into nearly a 30% premium on the value. But in order to sell (and do it reasonably quickly), it’s important to understand what factors impact value most.
Here are some of the elements that go into determining your home’s value:
While your first instinct is to assume bigger is always better, the utilization of that space is going to play a role as well. People’s preferences change and the real estate market is no exception. Years ago “size matters” was a given, but nowadays, many people are looking for home that require less upkeep and the bigger the house, the more ongoing maintenance will be necessary. Efficient use of space and modern open designs are what buyers pay a premium for.
We’ve all driven up to a house that looks amazing on the exterior, but leaves much to be desired when you enter. A poorly laid out kitchen, walls that chop up the common area and a host of other design elements can drastically impact the property value. As mentioned above, an open-floor plan (fewer walls) and high ceilings, will make a home appear more spacious and likely fetch a price on the high-end of the comps.
Updated vs. outdated
Take a step back and look at your home from a potential buyer’s point of view. Does your kitchen transport you back to the 80s? How about bathrooms? If you haven’t updated your home over time and plan to sell in its current condition, you should except to have a hard time achieving whatever number is on your mind.
Think about this… most buyers purchasing a home spread themselves very thin just to cover down payment + closing costs. How do we expect them to come up with the capital to renovate their “new” home? In most cases, they can’t and won’t. This opens up the investor pool and they want a deal, why else take the time to renovate your home? If an end user cannot buy your home and move into something that they are proud of, you can expect they’ll pass.
While you may love the fact that your home is tucked away, miles from the hustle of the city or any commercial hub, these characteristics can just as easily act as detractors to potential buyers. On the other hand, if your home is close to good schools, shopping and businesses, the value of your home should be positively affected. We all know location is key to determining home values, so it is important to consider yours with an objective view.
If you’re preparing to sell your home, keep these factors in mind when determining what it’s actually worth. For a free comparative market analysis from a real estate broker committed to getting you more from your home, contact No Limit Real Estate today.