This is one of the most asked questions of Realtors, in all markets. All homeowners, want to know how much money can I get for my home? There are a few factors that go into that answer. Let's break it down and uncover some tools that will help you answer one of life's greatest mysteries :)
UNDERSTANDING YOUR MARKET AND COMPETITION
The ballpark average price your home will bring is based on what the real estate world calls, "Comps." Comps is short for comparables, or homes in your neighborhood that are closely comparable to your home. So when you call a Real Estate agent to ask this question, that agent will perform what is called a Comparable Market Analysis (CMA) on your home. This will compare similar homes to yours, and allow the agent to come up with an average price. QUE THE 2ND QUESTION: "What makes my home similar to my neighbors?" Great question, I'm glad you asked.
- The size is the first obvious comparison. We are talking square footage, number of bedrooms, bathrooms, living space, and lot dimensions.
- Condition: This is a tricky one. I like to start with the "style" of your home (single family, townhouse, condo, etc.) moving on to upgrades and improvements that have been done in your home compared to other homes that are currently listed or have just recently sold in your area.
- Location. This is your neighborhood. This is where we really factor in where your home is located and how quickly homes are selling in that area.
This is a very important factor and is based on individual, case by case basis. If you already have a contract on a new home and are waiting on your current home to sell, well you might price your home lower than average in hopes of a quick sale. I don't have too many clients thrilled with the thought of paying two mortgages. On the other hand, some owners do not have to sell quickly and have time to start at the higher end of the spectrum. They want to start there and "wait it out" for their highest possible sale.
This can often be confusing to home sellers when they are starting the process of listing their home for sale. That is why we offer a free no obligation online home valuation report. We would love the opportunity to sit down with you and understand your situation and help you get the most value for your home in today's market.
CATHY'S HOME VALUATION ANALYSIS
Click the home below for your free no obligation home valuation analysis. We would love walk you through the process of home pricing and Lead you home B'ham.