For many home sellers, setting a price is one of the most difficult parts of the selling process. If the number you choose is too high, your home could sit on the market without receiving any offers. If it’s too low, you won’t get the full sum you deserve.
Finding a great real estate professional minimizes these pricing risks. We seller’s agents look at all relevant factors related to your home, its features, your neighbourhood, and the market. We analyze this information to come up with a price that’s fair, yet competitive enough to draw buyers in.
If you’re curious about the factors that determine your home’s value, here are five of the most significant.
1) Historical sales prices
One of the first things seller’s agents look at when they price a home is historical sales data. It’s an important factor, because buyer’s agents, appraisers, and home hunters are all going to consider it.
How many times has your home been sold in the past, and how much did it fetch each time? These numbers create a great starting point for determining price—though we’ll always look at more recent factors as well, such as significant renovations that have improved your home’s worth.
2) The local market
Are you selling when the housing market is hot? More demand for homes than supply typically creates more competition between buyers. That’s why prices tend to go up in hot markets, where sellers can justify higher asking prices. At any given time, there are a number of factors impacting D.C.’s market—from mortgage interest rates to the state of the economy.
3) Your area
There’s no doubt about it: your neighborhood matters. If your home is located in a desirable area, you’ll probably find no shortage of buyers willing to pay a generous asking price. If it’s in an area that’s not in demand, your property will generally be valued lower. Your home’s distance from amenities such as grocery stores and public transit will also play a role.
It’s worth noting that the desirability of neighborhoods often changes.
We see it every year. Just look at Hillcrest and Deanwood, two areas that have exploded in popularity in recent years.
In order to accurately account for your neighborhood and other relevant factors, a great seller’s agent will prepare a thorough comparative price analysis that looks at the prices of homes similar to yours in your area.
4) Your home’s size, layout, and features
Taking all of the other factors into account, more square footage generally allows sellers to set a higher asking price. For detached houses, lot size is also an important determining factor.
Of course, your home’s general appeal will also impact its value. Open floor plans are often valued higher, as are in-demand features such as hardwood floors.
5) Your home’s condition
It goes without saying that the condition of your home will have a big impact on its value. Major repairs (such roof replacements) and desirable remodels (like overall kitchen upgrades) can significantly boost property value. It’s important to know which changes will have the biggest impact—and which are non-negotiable.
Are you ready to determine the value of your home? Take the first step now by entering your address in the form below. We’ll get back to you promptly to discuss your home’s value!
Do you have questions about pricing or selling your home? Want to learn more about our team or process? We’re happy to help! Call us at 202-270-1081 or send us an email here to get the answers you need.