I get asked “what do you think my house will sell for?” quite often! Since every home will have unique qualities (just like people ☺) and no two homes that are identical – unless brand new specs. There is no way to answer this question on the fly. Many factors can influence the sale price of a home and research is essential for determining it.
One of the most important things to mention is that knowing exactly what the sale price will be is nearly impossible. Understanding the factors that influence the sale price will usually allow me to give a home a very good estimate.
The number one variable that impacts the sale price of a home is current local market conditions. Before deciding to sell a home, it is vital to understand the type of real estate market that is present. There are basically three different real estate markets.
A sellers market occurs when ready, willing, and able potential home buyers are abundant in the market and there are not enough homes for all of them to purchase. This situation is favorable to a home seller who is looking to maximize the sale price of their home. Basically demand outweighs supply. Homes sell faster and for more money.
A Buyers market is the least beneficial market for a seller and can impact not only the sale price of the home, but the terms and length of time it takes to sell. This type of market occurs when there are many homes for sale but not as many potential buyers in the market to purchase a home. Buyers tend to shop around more and homes wait to be chosen.
A balanced real estate market is not skewed in favor of either the seller or buyer, and occurs when there is a fairly even supply of homes for sale vs potential buyers looking to purchase a home. It is possible for both sides to make an advantageous deal.
A valuable resource for pricing real estate is a Comparable Market Analysis or CMA. The purpose of a CMA is to examine the recent sales of homes similar in age, design, size and location to a subject property. I recommend using only sales in the last 3 months if possible.
Location can make home more or less desirable to buyers. A home situated on a busy road generally will have a lower sale price than a home that is on a quiet neighborhood street. Or the same exact home on the waterfront or golf course will yield more vs one on an average street. Proximity to transportation, hospitals, schools and commerce as well as crime rates, taxes and amenities also factor into the desirability of a location.
Upgrades and special features will also impact on the sale price of a home. A home that is similar in layout, size, and location with granite counters, upgraded systems or a new roof will likely have a higher sale price than a home without. A home with quality upgrades and features will also sell faster then it’s competition.
Understanding what the most common factors are that influence a sale price will put potential sellers in a better position. I can help you put all of these together and advise you on the best timing and price to sell your home.
Are you wondering what it takes to sell a home in Navarre, FL? Maybe you’re wondering what factors influence the sale prices here? Give me a call – I’d love to discuss your home over coffee!
If you would like a personal analysis of your home’s value – just send me a request here.