While home owners anticipate high return for their property, estimating the value can be a complex and comprehensive process. There are many factors that can affect the market value of your property. Knowing what factors influence the sale price can go a long way in estimating what the final sale price will be. Below are some factors that can influence what the sale price of your property will be.
The local real estate market
There are customarily three different real estate markets: a seller’s market, when there are lots of potential property buyers and not enough property; a buyer’s market, when there are many properties for sale but not many potential buyers. The third real estate market is a balanced market, when there is an even supply of properties for sale as the number of potential buyers looking to purchase. As with any other commodity, supply and demand influences price.
The location or neighborhood
Residential property located on a busy road generally will have a lower sale price than a home that is on a more quiet area, which is more desirable. There are certain things potential buyers look for in a neighborhood or community while deciding which one to live in. These mainly include: distance from schools, churches, clinics, public transportation, the city, etc.
The condition of the property
Potential buyers will take into account the condition of your property when deciding how much they are willing to pay for it. A home in immaculate condition has a much higher potential for a great sale than one that is lacking the most basic routine maintenance. Buyers tend to look for important conditions like paints, floor covering, walls, ceilings, doors and windows. They may also pay close attention to the plumbing, electrical work, needed repairs, bathrooms, kitchen, and so on.
Upgrades, features, and amenities
There are certain upgrades, amenities, and features that home buyers are looking for which can have an impact on the sale price of a home. High end homes have a higher sale price because of the desirability from the eyes of the buyer. A home or parcels of land that may have similar square footage and location with added features generally have higher sales prices.
Expertise and experience of the real estate professional
Being able to sell a home is not the same as knowing how to sell a home. Hiring an excellent real estate agent or agency will impact the sale price of your property positively. If you are selling, a few things you should expect from the real estate agent include:
- A comprehensive marketing plan with strong negotiating skills
- Frequent communication, trustworthiness and honesty
- Strong online presence with a website, blog and social media
- Strong negotiating skills
The motivation level that a homeowner has can greatly impact the sale price. A home that sits on the market because the seller is not motivated, in many cases, will end up getting sold at a lower price than if they were eager to sell from the beginning. If you are selling a home and have doubts as to whether you should sell or not, do not list your home.