When you buy a house, you’re likely more focused on finding a property that fits your needs and budget than how the homeowner and/or real estate agent determined how to price the property. Understanding that process often feels more important when you’re on the selling end because you’re trading something you value for a cash value.
No matter how you sell your home, a few things factor into the ending listing price. On the traditional market, your house could sell for more or less money than the listing price. In this piece, we’ll focus more on how we determine what we’re going to offer you for your house if you choose to sell to brick.
Some factors we look at when settling on an offer include:
The size and condition of the home
Larger homes in excellent condition fetch higher prices. Additionally, homes with upgraded features will likely appraise for a higher price. Buyers are willing to pay more for a move-in-ready house. The amount of property available with the home can also affect the sales price. Most of the time, newer homes will appraise higher than older homes. If you have an older home that’s been well maintained and has updated plumbing, electricity, and other features, the age might not be as important. Homes with significant repairs will affect the sales price. Homes located in historic districts may value higher than older homes in a regular neighborhood.
When you hear the term “comparables” in real estate, the person refers to how a property compares to similar properties in the neighborhood. The value of your property is compared to other homes with similar features, including square footage, number of bedrooms and bathrooms, and amount of property (land). If you’re selling a three-bedroom, two-bathroom home on a ½ acre of land, built in 1990, it wouldn’t be helpful to base the price of your home on a 2-bedroom, 1-bathroom condo built in 1978.
Generally, comps can vary between agents or real estate companies, so it can be helpful to have numbers from multiple sources to get a more accurate idea of your home’s value.
The location of your home matters. Home prices consider how much a buyer would be willing to pay for a house. Homes located further away from amenities might sell for less than a similar property near major highways or other amenities. Crime rates can affect home prices in an area, but a real estate agent cannot legally discuss crime rates or draw conclusions from the information to share with buyers. Proximity to schools, access to workplaces, and closeness to shopping, dining, and entertainment may also affect the property value of your home.
In addition to your property and neighborhood, we look at the local market and market indicators. For example, we consider how many homes are for sale in your area compared to the number of potential buyers. We look at how quickly homes are selling and how much they’re selling for. In a buyer’s market, sellers are likely to get less money for their property because there are more homes on the market with fewer buyers. There are more buyers than homes available in a seller’s market, so the property could price higher. Other market conditions include how long homes are on the market, employment rates, and wage growth.
We know that selling your home might feel overwhelming, but we’re here to help you avoid agent fees and simplify the process. If you’re trying to sell your house quickly due to divorce, an inheritance, or to address financial issues, we can help you maximize your return without spending time you might now have, listing your home on the traditional market.
Call us today to get a quick quote on your house.