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Determining a home’s value

Posted by Chris and Angela Dinnell on March 23, 2022

Oftentimes, we will hear people say things like, “whoa, did you see the house three doors down is listed, and did you see for how much? That’s crazy big money and it seems like a good idea to sell our house too since they are asking so much”.

With that being a common statement, and a common misconception (about how a home’s value is actually determined), we thought we would talk about a few of the key price-determining factors today. But you should know that there are many factors involved, and sometimes it’s not done correctly at the initial listing stage.

Sure, one of the main factors is comparables. Comparables would be a similar product, sold in the same area, recently. So things like the square footage of home and lot, number of bedrooms, bathrooms, age and style of home, and special features would also be taken into consideration. Condition of both the interior and the exterior of the home and upgrades will also be looked at. Costs associated with upgrades and Renos and the quality of workmanship are also considered.
A recent sale means as recent as possible, but 3 months or longer could mean a completely different market, with different sale conditions which could make it not comparable at all any longer. So comparing properties can be really tricky.

If you notice a home has been on the market for longer than others that seem comparable in size, location and condition, chances are it’s listed too high in price. Overpriced homes usually will sit on the market with little to no action until the seller chooses to lower the price to market value or remove it from the market all together.

comparing properties can be really tricky.

It may seem tempting to list because you have seen some action a few streets over from yours, but please know that not everything is as it seems. Not all homes sell the first time around and not all homes are priced properly. Determining the value of each home as an individual dwelling is a skill, and it takes time, research, and diligence to get it right. Many times a listing will suffer many price drops, or list, terminate and re-list (lower) just to get it sold.

If you would like more information on how to determine the value of your home, reach out to us. We are always happy to help.

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