Ty’s Tips | 6 home attributes that will set your sale price
It’s natural to have an emotional attachment to your home, even if you have plans to put it on the market. But it’s also important to remember that the sale of a home is a business transaction, and emotion should play as little of a role in the process as possible. Prospective buyers won’t put any value on your personal memories or design tastes, but there are specific things they will equate to dollars and cents as they decide if your asking price is a fair one.
So whether you’re using an agent or going the For Sale By Owner route, here are six things to consider when determining your home’s value:
Age and condition: When your home was built and the condition it’s in definitely make a difference when you’re setting a price relative to similar homes in your area. Occasionally this can be tricky as a home that was built in 1920 could have been totally remodeled in 2001, essentially reducing its age significantly. So make sure you are clear on the details of comparable homes (or “comps”) to ensure you’re asking price will be in the right ballpark.
Square footage: Yours should be within 300 square feet, more or less, of any comps. This isn’t a hard-and-fast rule but rather a rule of thumb to keep in mind when combing the area.
Location: Needless to say, this has a significant impact on your home’s value. For example, let’s say your home backs up to the local lake and a similar home in your area has no lake access. Your home will be more valuable due to your lake access. The quality of the school district as well as proximity to highways, parks and retail stores are other factors that affect value.
Amenities: Yes, your home’s bells and whistles make a difference. So if you have a pool, spa or gourmet kitchen, you will be able to set a slightly higher asking price than similar homes that don’t.
Lot size: The larger the lot your home sits on, the higher your value. The rule of thumb in this department is to stay within a .05-acre difference, more or less, when looking at similar homes.
Bedrooms and bathrooms: How many of each does your home have? This will weigh heavily on the value. When looking for comps, seek out homes that have the same bed/bath count as yours in order to arrive at the most accurate asking price.
Remember, you don’t want to set your asking price too low and undervalue your home, but you don’t want to scare away potential buyers with an inflated number either. Finding the sweet spot is key, and hopefully this information will help you do get there. Good luck!
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