What Determines the Sale Price of a Home?
Arguably the most critical step when it comes to 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 potentially buying. REALTORS® offer much value in helping both home buyers and home sellers calculate and consider pricing. Here are three things that influence the price of a home.
Age & Condition of the Home
These factors are imperative when it comes to 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 home buyer and the seller, and the price or offer should reflect it.
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 an offer.
The Property’s Location
Everything from the market to the neighborhood to the schools to nearby attractions and amenities will dramatically influence a home’s price. Convenience, economy, and education are all major considerations for a buyer.
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.
