Factors to Consider When Selling Your Home and Choosing a Price Point
One of the first questions that clients ask Team Endicott is How much can you sell my house for? Though it seems a fairly straightforward question, there are many factors to consider when pricing your home.
1. Location: One of the most common things you will hear is location, location, location. A more desirable neighborhood in a good school district with strong businesses and low crime will have a higher price point. The most recent selling prices of similar homes in your area will also affect where you will be able to price your home. This is what realtors refer to as “comps.” A comparison of price points on similar size and style of homes and home conditions in your area that gives you a frame of reference for its’ current market value.
2. Home Maintenance: A well maintained home that is clean with good paint and carpet and that has been well cared for will hold their value. Many homeowners don’t realize that upgrades don’t generally have a huge return on investment unless it is a major kitchen or bathroom renovation. Even with those upgrades you won’t get 100% of what you put in back, but you will most likely have an easier time selling with those features. But don’t expect a $20,000 kitchen renovation to add that same value to the selling price.
3. Supply and Demand: Market conditions are constantly changing so you need to be conscious of the supply and demand for homes in your area. This can fluctuate with the seasons as you will see more homes for sale in the spring and summer months but the supply will be much higher as everyone likes to list homes in the spring and summer. Demand is lower in the fall and winter as people don’t like to move during holidays and cold weather, but the supply is lower. So, if your house is in good condition and someone needs to move they have less inventory to pick from, giving your home a little more exposure.
4. Agent: Realtor agents fees vary from agent to agent. Some agents sell your home for a flat fee and some take a percentage of the sale for their commission. That being said, not all agents offer the same customer service, marketing, or knowledge. Having an experienced agent is a huge advantage because you will not have the surprises that can sometimes occur with newer agents who are still learning the business themselves. Surprises can often result in extra money for the seller. Finding someone with a good reputation, integrity, and experience goes a long way even if you have to pay a little more.