How to Determine if Your Home is Overpriced

So you own a great home that you’re really proud of? You love the interior and large spaces throughout the home, your kids love the school they go to, and the neighborhood is safe.

However, you found your dream home and want to sell your current home to someone who loves it as much as you did when you first saw it! You price it according to how you feel about it. It’s an amount that you see fit to get back everything you put into the home.

But how do you determine if your home is overpriced? If you are not sure how to price your home, here are some factors to help you determine the true value of your home.

What is Your Neighbor’s Home Worth?

By finding out your next-door neighbor’s home cost, you can better understand the value of your own home. If it’s a substantial amount lower than the price that you set for your home, then you may want to rework those figures to ensure that you are in balance with the homes nearest to yours.

Where is Your Home Located?

Take a look at your neighborhood. Consider everything from the curb appeal of your street to Price a home rightyour school district to crime rates. How far are you away from entertainment or the nearest grocery store? Sure, these factors are out of your control, but unfortunately they still play a role in how much you can charge for your beloved real estate.

Even if you live in a beautiful home, the quality of the surrounding area will drastically affect your home’s value for better or for worse. There’s an old saying in real estate that you should, “buy the cheapest house in the nicest neighborhood.” This helps give you the biggest resale bang for your buck. When you have the nicest house in the crummiest neighborhood, the reverse happens; you have a tough time making all your money back in the resale. Depending upon what city your home is located in, you may want to adjust the value of your home sale price accordingly.

Have You Made Updates?

If you have not made updates to your home, you may want to start. Your home may be beautiful on the outside, but if you have not updated your 40-50 year old home since you first bought it, then you should consider fixing or renovating parts.

Even though items that you update may depreciate, even the most minor fixes to your home will add value to your open house. Do you really think people want to come to an open house to see that awful carpeting from 1955 still in the living room? No. So clearly, minor updates are not going to add much value to the home, but they will definitely help sell your home faster.

Leave a Reply

Your email address will not be published. Required fields are marked *