What is your house really worth?
One of the most important factors in selling your home is the sales price. After all, you want to maximize your return.
Let’s say your family has grown larger, along with your earnings, and you want to move up. You’ve been waiting for that special piece of property to appear on the market — and at last it has. On the other hand, it might be the time to scale down a bit. The kids have flown the nest, and you want to invest some of your equity into a fund for the future. Whatever your reasons, you have high hopes. Here’s how to find out what your house may be worth.
Comparative Pricing a Tool
Value is a relative term. One owner’s quaint little cottage may be another’s money pit. Obviously then, you need some basis of objectivity — and you can find it by comparing your house against other houses that are for sale in your neighborhood. Find out their sale prices and then compare them in size to yours. Specifically, you should relate the number of bedrooms and baths against yours, then factor in other distinctions such as the overall condition of each house, the size and appeal of the lots, architectural style, and any extra amenities that might add to desirability.
You can also make this an easy task by turning to your real estate agent for a more comprehensive method of house comparison. Your agent will have access via the Multiple Listing Service (MLS), which lists asking price for every home for sale by members of the Spokane Association of REALTORS®. It also tracks sold prices. This will allow you to look at current asking prices, as well as selling prices.
You can count on your agent’s frankness if you are asking too much. He or she knows what people in the area are actually receiving for their home, as well as the history and trends, and the home improvement projects that affect prices in the neighborhood. Work with your agent to factor in all the qualitative aspects of your home.
Neighborhood
Location, location, location. Agents will tell you the worst house in the best neighborhood is worth more than the best house in the worst neighborhood. Considerations to include are schools, services, transportation, and the general upkeep of other nearby homes.
Style, Landscape
It’s the heart of “first look” emotional appeal, or “curb appeal.” The home has to appeal to those living there. After a long day at the office, the welcoming sight of home as you turn into the driveway can rejuvenate the soul.
Floor Plan
The layout of a house really directs how people will live in it. For example, a family that enjoys entertaining often may prefer an open place, like that found in many contemporary houses. But if people prefer their privacy and desire more room for quiet, a more traditional design will catch their eye.
Appealing Details
Custom-made items such as built-ins, draperies or special appliances that you are willing to leave behind can add value to the house. The same is true for fine architectural elements such as handcrafted wood molding, aristocratically tall ceilings, and dramatic windows.
Improvements
Major improvements may yield attractive returns at sale time. An updated kitchen or a second bath are major buyer attractions.
Taxes
City and county tax structures can have a significant effect on the value of a house.
Other Factors
Housing value is subject to the law of supply and demand. If there is a shortage of housing, prices will rise. Seattle is a good example. Homes that sold just a few years ago have much higher prices because there is a shortage of available homes for sale and a scarcity of land upon which homes can be built.
Pricing is more of an art than a science. Talk to your real estate agent. You may not like what you hear, or you may be ecstatic, but most importantly you will be armed with a realistic and ultimately rewarding perspective that will help you set a proper price to sell your house efficiently and fairly.
And, that would be a great way to start.