You may think that the sale price is the only factor when you are looking at comparable properties and trying to set a price for your home by using competitive market analysis. But it’s actually a bit more complicated than just looking at the price on Zillow.
So how does one come up with that price when putting the property on the market? Here are five things to determine your home’s value that you might not be aware of.
1. New Construction Nearby
Due to low prices for lots and varying prices in home building materials, new homes can actually be cheaper and cost less per square foot than existing homes. If there is a lot of new construction nearby, that can affect the price for your own listing for your house.
Recently renovated homes typically sell for more than homes that have not been updated in a while. If you have recently upgraded your home–especially sought after upgrades like the kitchen or master bath–your home should be priced appropriately.
3. Developable Lots
Not all lots are created equal. Even if the square acreage is the same, a lot that is easily developable will get a better price than a hilly or rocky lot that needs a lot of preparation.
4. Listing Price vs. Sale Price
Whether sellers actually get their asking price depends greatly on the market. When you are pricing your house, it is important to look at sales prices, not just listing prices. The listing price does not always accurately reflect what a home will sell for.
Nearby amenities, safety, schools, and noise levels can vary greatly within a neighborhood. Homes in more desirable parts of the neighborhood will sell for a higher price, all else being equal.