The amount you can get for your home today will depend on its condition, characteristics of the neighborhood, and the state of the local economy. Some or all those things may have changed significantly since the time you purchased your home.
Your Home’s Condition
A home’s components such as appliances, flooring, and fixtures can wear out over time. Assuming you performed ongoing maintenance, as well as any repairs needed along the way; your home may still be in pristine condition. However, if your home’s physical condition has deteriorated due to overlooked items needing attention this may affect your asking price.
Buyers are looking for homes in areas with good local schools and plenty of job opportunities, as well as stores, restaurants, and activities nearby. The nature of your neighborhood may have completely changed since you moved in. The schools may be better than they were in the past, or they may be struggling because of budget cuts or other factors. The area may have a thriving economy, or companies may have shut down or relocated, leaving jobs hard to find. The neighborhood may have successful businesses or entrepreneurs may be struggling to stay afloat. All those factors can influence your asking price.
In an area with a vibrant economy and lots of job opportunities, home prices may be high. A struggling economy, on the other hand, may depress housing prices. Other factors, such as tax rates, may either draw people to the area or keep them away. Demand can also affect home prices.
The current condition of the local real estate market is also important. A seller’s market has more interested buyers than homes for sale. If you’re listing your home in a seller’s market, you may be able to get a high price. In a buyer’s market, with more homes for sale than people looking to buy, you may have to set a relatively low asking price to attract a buyer.
Discuss a List Price with Your Agent
Your real estate agent can explain how these factors can influence your home’s current market value. Your agent will also have access to detailed information on “comps,” or recent sales of similar houses in your area. Based on that information, your agent will be able to help you set a reasonable asking price for your house.
What's Your Home Worth?
If you are considering selling in the near future, it’s now more pressing to know what your home may be worth. During these economic uncertainties is crucial to stay ahead of the market shift!