Saturday, January 14, 2017

Placing A Value On Your Property

There is a common question among all home sellers: "How much should we ask for our home when we put it on the market?" As a real estate professional, I will tell you without a doubt if any agent tells you that they have a foolproof method, they are lying.  There are many factors that go into finding a price that will generate interest in your property while at the same time maximizing the return on your investment. Here are the big 3:

  1. Comparable Properties. The first place I look when deciding who to advise clients is comparable properties. These are properties that have similar characteristics to the subject property. I look for similar bedroom and bathroom numbers, region, construction style, etc. Unless you are in a subdivision with very similar homes, this can sometimes be very difficult to do and requires a great deal of research.
  2. Market Trends. Each market has trends that can vary from city-to-city or even from region-to-region within a city or county. Are prices trending up? Down? Flat? These are all factors that need to be examined when determining value.
  3. Property-Specific Features. Not all property is the same. Just because it is comparable, does not mean it is identical.  Does your home have an in-ground swimming pool? How about a sauna? Theater room? Features such as these can add value over comparable properties and need to be evaluated individually. Remember, that not all features are positive, and negative features need to be taken into consideration as well. Think about your septic and water systems. Being off-grid may be a benefit to you, but a typical, American buyer may not share the same mindset.
Our tendency when pricing is to look at what it cost us to buy or build. We also place emotional value on property that is based solely on our feelings about the property. If you ascribe value strictly based on any of these factors, you can expect to experience frustration and a lack of success. It is always best to have a disinterested third party help you to honestly assess the value. Real estate professionals have the tools and expertise to help make these decisions quickly and accurately, and will often readily offer to help without obligating you to use their services. Contact us today for a free evaluation of your property.

1 comment:

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