How to Determine a Price for Your Home
There are so many factors that go into determining the correct price for your home. There is no simple answer when faced with the question of how to correctly price a home, but there are some guidelines that can be followed. Let’s take a look at a few of them.
LOCATION: You have all heard it spoken about real estate, whether you are buying or selling…location, location, location. A home in San Francisco will most likely be priced higher than a comparable home in Des Moines. Why? Desirable location will generally raise the price of a home. It’s as simple as that.
ECONOMIC CONDITIONS: Looking back at the recession we just emerged from, it is easy to understand this factor. A beautiful 5,000 square foot home in a desirable location would be priced lower than market value five years ago than it is today. The state of the economy affects the laws of supply and demand. If demand is down because of the economy, then prices will fall.
RISE IN POPULATION: Simply stated, if the population increases in an area, chances are good that home prices will increase. Again, it means a rise in demand and that will usually mean a rise in price.
JOB MARKET: Closely related to the rise in population. If the job market is healthy, and wages are rising, you can expect the real estate market to be healthy and prices to rise.
SIZE: In real estate size does matter, but perhaps not in the way you would think. Most people would think that a bigger home could demand a bigger price, and that is true to a point. Once you get to mansion size, though, you are basically talking about shrinking the demand population to the point where you have very few buyers. And as demand shrinks so do prices.
COMPARABLE HOMES: This is perhaps the biggest factor in pricing a home. What do similar homes in that area sell for? Once you have established that, then you can make adjustments to the price based on the individual home you are selling.
Take all these factors into consideration and you have the basis for a good estimate of your selling price.
Work closely with your real estate professional and trust their advice.
Sports Relocation, Inc. Sports Relocation, Inc assist players/coaches of all professional sports leagues including the NBA, WNBA, NFL, MLB, NHL, and entertainers relocate nationwide by servicing their Real Estate & Relocation needs. Ikem Chukumerije is licensed to practice real estate in New York, California, Nevada, Florida, & Georgia. Sports Relocation, Inc operates nationwide and provides elite athlete relocation services in all 50 states and internationally.