4 Things That Influence the Price of a Home

Louisiana REALTORS® • August 21, 2024

When you step on the lot at a car dealership you’ll notice a variety of cars and a variety of prices. The reason for the range of dollar signs stems from several different factors. The sticker price is the result of a number of elements ranging from MSRP to the dealer’s invoice. There are also physical traits that can inflate or reduce the cost of buying a car. Age, engine size, amenities, technology, mileage, and more all directly influence how much you could end up paying for a new set of wheels. With all of these moving parts, there is a lot of room for negotiation. In this sense, buying or selling a car can be a lot like buying or selling a home.


Arguably, the most critical step when selling your home is setting an accurate and appropriate price. The same goes for buying a house. It is very important that you understand what a fair price is for the property you are considering. This is where REALTORS® offer so much value in helping both buyers and sellers calculate and consider pricing. Here are four things that influence the price of a home.


Historical & Comparable Real Estate Sales

Looking at the historical sale prices of an older property, combined with the prices of homes in the area of comparable size, age, and condition, can provide a consistent baseline for both setting a price and negotiating.


Age & Condition of the Home

Both of these features are imperative when determining the future cost of ownership. In terms of maintenance, older homes could require more work and money in the long run. The foundation, electrical work, structural integrity, plumbing, and overall age should be strongly considered from the perspective of both the buyer and the seller, and the price or offer should reflect it. 


Location, Location, Location

This may sound cliché, but it’s still very true. Everything from the market to the neighborhood to the schools to nearby attractions and amenities will dramatically influence the price. Convenience, economy, and education are all major considerations for a buyer. 


Size & Appeal of the Home

This sounds obvious, and as buyers become more focused on price per square foot, it is important to price accordingly. Other factors like the layout of the home and additional features (like a pool, fence, patio, etc.) will also play a large role. 



While buying and selling a home is a big decision, the success of that decision ultimately comes down to price. How much do you pay, or how much do you get? Trusting a REALTOR® from either side of the transaction will help ensure you get exactly what you need.

SELLING RESOURCES

Consumer Guide Update: Buying Land and Building a New Home

By Louisiana REALTORS® • April 17, 2025
As previewed last week, NAR is pleased to share the latest consumer guide focused on buying land and building a new home. This guide covers how to find land for sale, explains construction loans, and weighs the pros and cons of building a custom home. As a reminder, all guides in this series are available for download—in both English and Spanish—on facts.realtor . Please allow a few days for the Spanish version of the latest resource to be translated and uploaded. For ease of reference, below is a list of the most recent guides: NEW: Buying Land and Building a New Home Deeds and Titles Alternative Listing Options Navigating Multiple Offers Homeowners Associations Thank you for continuing to engage with the “Consumer Guide” series and for sharing the resources with prospective clients to ensure they have the information they need to find success in their homebuying or selling journey. Remember that these guides are for informational purposes only and are not meant to enact or change any existing NAR policy. Be on the lookout for next week’s guide on Wednesday, which will cover property title theft.
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5 Negotiation Secrets Smart Buyers Use to Get Better Deals—And How a REALTOR® Can Help

By Louisiana REALTORS® • April 16, 2025
Negotiating a real estate deal can be overwhelming, especially for buyers who don’t have experience with the process. Here are five key negotiation strategies smart buyers use—and how working with a REALTOR® provides a competitive edge.

Consumer Guide Update: Deeds and Titles

By Louisiana REALTORS® • April 11, 2025
As previewed last week, NAR is pleased to share the latest consumer guide focused on deeds and titles. This guide covers the difference between a deed and a title, common types of deeds, and title searches and insurance. As a reminder, all guides in this series are available for download—in both English and Spanish—on facts.realtor . Please allow a few days for the Spanish version of the latest resource to be translated and uploaded. For ease of reference, below is a list of the most recent guides: NEW: Deeds and Titles Alternative Listing Options Navigating Multiple Offers Homeowners Associations Marketing Your Home Thank you for continuing to engage with the “Consumer Guide” series and for sharing the resources with prospective clients to ensure they have the information they need to find success in their homebuying or selling journey. Remember that these guides are for informational purposes only and are not meant to enact or change any existing NAR policy. Be on the lookout for next week’s guide on Wednesday, which will cover buying land / constructing a new home.
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