Your home’s value
and the factors that affect it
In our report “Common Pricing Errors” we discuss some of the factors that do not affect a property’s market value, like the amount of money that a seller has invested or the needs that the seller may feel that they have. Let’s take a look at some of the things that do impact the value of your property, and some of the market conditions that can affect how much a buyer may be prepared to pay.
Features
Obviously one of the key factors in your home’s value is the features and amenities it offers. It’s style (some are more popular with buyers than others), it’s age, it’s size, and the amenities that it offers relative to other available properties all play a part in affecting your home’s value.
Condition
All buyers will take into account the condition of your property when they determine if they want to buy it, and how much they’d be willing to pay. It goes without saying that a home in immaculate condition has a much higher potential for a top dollar sale than one that is lacking the most basic routine maintenance.
Location
Every area has its high end and its low end. The market value of your property is affected by that reality. People that purchase homes in “lower end” areas expect to pay less than they would if they bought the same home in a “higher end” neighborhood.
Competition
Ultimately, you are limited by the current competition that is on the market at the same time as your home. Prudent buyers will not pay more for your house than they’d have to pay for other similar homes.
Current market conditions
If your market is currently flooded with similar properties for sale and real estate buyers are scarce, you can expect to sell your home for less than you would if there was a shortage of supply and lots of eager potential homebuyers.
Your agent’s approach to marketing
In this very diverse business, there are all kinds of sales agents. Like most industries, some are not very good at their work, some are just average, and some are exceptional. The marketing plan that your agent executes on your behalf will determine the amount of interest that is shown in your property from the outset. Your agent’s level of skill and expertise in the negotiating process will affect the amount of money you’ll be able to get for the home. Many people put more thought into what they’ll have for dinner tonight than who they will trust to market their most valuable asset. Don’t you make the same mistake!
Teamwork
Your bottom line will be affected by the level of cooperation that you give in terms of preparing the home for showing and making it accessible to buyers and their agents.
