How do you determine what your house is worth?

How do you determine what your house is worth?

If you’re considering selling and aren’t sure how to price your home OR your considering buying and want to know what to consider when offering on a home, then this video will help.

There are a few things to consider.  Size, Condition, Location, Comparables, Marketing and Negotiating.  All of these have a huge effect on the price of a home.  Think about it … you can’t compare a home that is 2000 sq feet to a home that is 4000 sq feet.  That would be like comparing a Maserati to a Hyundai – they just don’t match up.  They are not comparable.  You need to make sure you are comparing the size just like an appraiser would.  In most cases if there is enough inventory an appraiser likes to go anywhere from about 200 to 400 square feet difference both higher or lower to use as comparables to determine pricing.  If there isn’t enough inventory, they will make adjustments in their evaluation of what the home is worth based upon the difference in size.

Now let’s think about condition.  Again, think about this in relation to a car, you can’t compare a beat up old hoopty to a brand new shiny car… right??  A home is the same!

When pricing you have to look at things like:

  • How upgraded is your home
  • How modern is your home
  • What is the landscaping like
  • Are you in a great location close to shopping or have easy access to freeways
  • How does your area compare to other areas
  • Are there any nuisances like power polls, heavy traffic, or anything else that could be considered undesirable

To learn more about how important marketing is, watch the video on marketing your home.

Remember, when pricing it’s natural to feel like your home is worth more than everyone else’s because we have an emotional attachment to it.  But you’ve got to look at the all the variables because underpricing your home will cause you to lose money BUT so will overpricing your home.