From the KCM Blog: "6 Factors to Consider When Pricing Your Home"
Yesterday, we showed how even the experts are having trouble determining price in the current real estate market. There are so many moving parts and each part is evolving rapidly. Today, we want to look at the major determining factors in establishing the current value of a residential property.
If you currently have your house on the market or you are considering selling it in the near future, make sure you find a local real estate professional. Request them to explain each of the following points and how they apply to your region or neighborhood. You will be better prepared to determine the best option for you and your family once you have this information.
1. Demand for a Particular Type of House
We realize each home has a unique value based on its amenities; however, buyers look at certain basic requirements (ex. style, number of bedrooms, school district, and proximity to mass transit). You should look at your home and see which category it would fall into. For example, you might have a 4 bedroom colonial in a certain school district. Ask the real estate person you are working with to give you a list of the homes in this category that have sold in the last six months. This will give you an accurate depiction of what homes like yours are actually selling for.
But don’t stop there. Take the six month number and divide it by six. That will help you determine the approximate number of buyers that will purchase a home like yours each month. Then go to the next step.
