You know what you paid for your home initially, and you are well aware of all the sweat equity and cash that you have put into it over the years. You may also have investigated inflation rates, and increases in home prices. However, even armed with all this information, you may still not have a realistic picture of what your home is worth in today’s market.
The first thing that a real estate agent does when preparing to sell a home is to look at comparables. This is information on what homes in your neighborhood that are most like yours are selling for. In the world of real estate, one home that sells far above the normal market value in a neighborhood can boost all other prices as well. Unfortunately, the opposite is true as well, and while your home may be the best one on the street, you may still not be able to get the price you have in mind.
Starting with the comparables, you can begin to add on to the price considering the extra advantages your home may have over all the rest. If you have a larger lot, or are on a corner lot, this is a bonus. If you have an especially well landscaped lawn, possibly a fenced in back yard, and your home is obviously in good shape where paint, windows, and roofing are concerned, this will also give the price a boost.
Check out what homes are selling for in your area. If you can, go to a few open houses and check out the competition.
As far as the interior goes, any well done remodel you have done to the kitchen or baths is a major plus. Buyers do not want to remodel these expensive rooms. Hard wood flooring in lieu of carpets is also a good selling and pricing point.
You or your Realtor can begin to add on to the base price of nearby homes by including all these improvements, however, you can’t always expect to get every penny you put into the home back out when you sell. If you purchased a $150,000 home years ago, and over the years put another $100,000 into it by adding expensive improvements, you will probably not be getting a full return on your investment. In today’s market, your home may be listed well under your initial purchase price. High dollar expenses, such as the most expensive cabinetry, and flooring may be fine if you are planning on living in your home for the rest of your life, but they aren’t always cost effective when it comes to selling.
In the long run, the price of most homes is determined by the location, the value of nearby homes, how well you have maintained and upgraded your property, and the current market.