Whether you’re selling or buying a home, many elements come into play when deciding its worth. From the location, size, condition, and features of a home, each component can have a dramatic impact on its value. When it comes to pricing your property, be sure to consider all these factors before settling on a price. In this article, we will go through some of the most important aspects that buyers consider when deciding what they’re willing to pay for your home.
Location
The location of your home can have a great influence on its market value. Those in more desirable areas, with features like great schools, access to public transport, and nearby amenities such as shopping centers, parks, and eateries are likely to have a higher sale price than others. Not to mention, properties near attractive scenic views, recreational water sources, and natural environments can help drive prices up.
There isn’t a lot you can do about where your home is located, however, you can still point out its advantages, such as the quality of the neighborhood, school district, recreational activities, and renowned eateries. Just think about why you fell in love with your home in the first place.
Size
When it comes to buying a home, size matters. Homes with more square footage tend to cost more than their smaller counterparts. However, there are other important factors that can influence the value of a property. Open-concept layouts, generous kitchen areas, and ample storage solutions are often appealing to buyers. Not to mention, extra living spaces like a finished guest house, pool house, or bonus room are great perks that can help add to the value of the home.
Condition
Home condition plays an essential role in determining its value. Houses that have been kept in good condition and regularly maintained will receive a higher price than those in need of repair. Therefore, it is beneficial to get a home inspection before putting your property on the market. The report will detail any damages, such as any items needing repair or renovations. Making thoughtful enhancements can significantly add to the overall worth of your home.
Today’s buyers are drawn to homes that are renovated or upgraded with modern finishes and appliances, such as new roofs, HVAC systems, and fixtures. Investing in these features can result in an increased final sale price.
Features
The features of your home can make a big difference in its value. The vast majority of homebuyers want a combination of an open floor plan and private specialty rooms. Of those, the majority prefer an open-concept kitchen and dining area. Other features highly desired by buyers include:
- Dedicated laundry room.
- Spacious walk-in pantry.
- Ceiling fans.
- Backyard patio for outdoor living.
- Front porch.
- Side-by-side kitchen sink vs. single bowl.
- Energy star-rated and top-of-the-line appliances.
- Energy-saving lighting, solar panels, or a smart home system.
- Hardwood floors and other high-end finishes.
- Full bath in the main living area.
- Exterior lighting.
- Swimming pool.
When selling your home, your Realtor should be featuring all the amazing qualities of your home through both pictures and written content.
Market Conditions
Market conditions can influence the prices that buyers are willing to pay for a home. If the market is a seller’s market, meaning that there are more buyers than homes available for sale, then buyers may be willing to offer more than the asking price in order to make sure that they are successful purchasers. On the other hand, if it is a buyer’s market, with more homes than buyers, prices may be more negotiable, and buyers could secure a property for less than the asking price.
If you find yourself in a hot market, where demand is high but supply is low, you should expect that prices may be inflated, and you may have to contend with lots of competition for the same property. In order to make sure that you get the home you want, you may need to offer more than the asking price. Here are a few scenarios where it may be worth considering bidding more than the list price: if you have strong feelings for the home, you know that there are multiple offers, the home appears to be undervalued, or there are cash bids on the table.
How to Sell Your Home for the Most Money
When it comes to the sale of your home, there are many components that influence how much a buyer is willing to pay. You may not be able to control the housing market, but you can increase the value of your home and make a great first impression with buyers. By enlisting the help of a professional photographer, staging your home, and creating an effective marketing strategy, you can maximize the perceived worth of your residence and attract a larger pool of potential buyers.
As a seller, understanding these factors and working with a knowledgeable real estate agent can help you determine a fair price for your home and attract the right buyers.
Luxe Client Group is the premier source for expert advice and access to luxury properties, lifestyle, and top real estate news. Share what inspires you on any of the social media channels. Tag us at @LuxeClientGroup.
NAHB Identifies Top Features and Design Trends Across Generations for 2022
Photo by Roberto Nickson on Unsplash
