There are several methods real estate agents will use when valuing your home. To reach a compromise between the price the seller wants and what the buyer is willing to pay, agents must use a somewhat standardized method for determining property and housing pricing. If not, then housing prices would vary wildly and become more like online classifieds for used electronics than a housing market.
For the owner, the upkeep and maintenance of the home will begin to pay off massively. For the buyer, having a home inspector discover and uncover any hidden areas of damage or neglect is a necessity in finding the right home at the right price. For both the seller and the buyer, having a real estate agent that understands what you are specifically wanting in your home and how or where to get that on budget is a big part of their role and job in working with you. The price of a home can make or break a sale, and it’s crucial to get it right. So, how do realtors determine the right price for a home?
How Location Affects Your Home’s Value
Determining the correct price for your home is a scientific method. When an agent inspects a property to determine the price, they already have a strong inclination as to the price before even stepping inside because first, determining the price of a home is the location. Homes in desirable neighborhoods will typically command a higher price than homes in less desirable areas.
Secondly, a realtor will conduct a Comparative Market Analysis (CMA). This involves looking at similar homes in the area that have recently sold or are currently on the market that were built roughly the same time and with relatively similar amenities and distances to shopping centers or other destinations. This helps to provide a sense of the current market conditions and what similar homes are selling for.
Kelowna Lots for Sale!
Be it an empty lot or a large-scale home, Kelowna has a variety of properties that range from farmland life to city living. When evaluating these properties, there are a few general details that will be front and center for every listing going out to the public. For starters, the simplest specifications of the home will play the largest part in determining the listing price: the number of bedrooms and bathrooms, as well as the square footage and number of floors.
Next, the realtor will take into account the age and condition of the home, as the older the home, the more renovation or repair costs will be incurred by the buyer. Just like an aging car, if there have been many renovations or many repairs, that too can hurt the value. Keep in mind that while repairs may seem costly, they pale in comparison to the price fluctuations between locations and the age of the home itself. The realtor will consider any necessary repairs or renovations that may affect the price of the home.
Realtors will also take into account any unique features the home may have when pricing it; for example, a home with a pool or a finished basement may be priced higher than a similar home without those features.
Home For Sale in Kelowna: How to Get Your Best Price
Hiring a professional to stage and list your property can go a long way in building the value of your home or maximizing the offers that you receive for it. There are minor touchups that may not cost you much in terms of money and can really help your listing. The “curb appeal,” or how the home looks when viewed from the street, is always a conscious thought of the buyer – so to get the most for your property, consider sprucing up the front yard, ensure there is no visible damage from the road, and take proper care to maintain your home when it is on the market.