3 Things to Take Into Account When Pricing Your Home

When the time comes to sell your home, the first thing that’s going to come to mind is the value of the property. As you consider listing your home, think long and hard about what the numbers really mean. Selling yourself short can mean missing out on much needed money that can go into the cost of your new home, a few car payments or it can be put aside for college funds down the road.

While everyone hopes to get the maximum value, if your house is listed at too high a price that means it’s going to sit for months and months even in this market. So what does that sweet spot look like? It’s going to be up to multiple factors beyond the physical house itself and that can make the process feel quite daunting for anyone. To make the process a little clearer, here’s a few things to always keep in mind.

The Location

Where the home is will always be a massive factor in the estimated value of the property. Depending on the region, the location could be a much larger factor than things like the square footage of the home itself. Never underestimate the school district the home is in, even if children have never been part of the equation for you personally. That will be a major factor in when most potential buyers are considering your property.

Beyond thinking about the neighborhood the home is in, where exactly the home is also extremely important. Having close proximity to a highway might be a large benefit for the price of the home, but having the noise of that same highway come right into the home’s open window is an obvious negative.

The Additional Costs

It’s easy for anyone to become fixated on the value they are hoping to get for their home but there’s always more that comes along with it. Using a seller closing costs calculator early in the pricing process is a great way to understand the numbers and percentages you, as the seller, need to be familiar with.

For those looking for additional insight as to what other costs can be expected, keep in mind parts of the process such as home inspections, fees, and title insurances. In typical times, the closing costs are often paid by the seller but in a strong sellers market, potential buyers might offer to take on these responsibilities if that’s going to give them an advantage over others also considering making an offer on your home.

The Condition

Depending on the region the home is in, location might be one of the most important things as mentioned. That doesn’t mean the condition of the home won’t also play an important factor in determining the right price for your home. Think about the common things. How recently was the roof replaced? Does it have features current buyers are hoping for or does it largely look the same as when you purchased it decades ago?

If the more important parts of a home, places like the bathroom and the kitchen, are very outdated by today’s desires, as buyers are walking through the home that’s what’s going to stick out the most. The potential costs of having to update these areas of their new home could very well overshadow the home’s potential.

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