Home Sellers » Home Value

Factors Affecting the Selling Price

The value of your home will ultimately be determined by the real estate market. As prospective buyers research different properties, they will have a clear perspective of the relative value of different properties and be aware of the competitive factors of the market. The following key factors can affect the selling price of your home:

  • Location -- is the single most important factor in determining the value of your home. The relative benefits of your property's location will change the perceived value of your property.
  • Asking Price. Pricing your home competitively from the beginning is an important factor in determining the length of time it will take to sell your home. Your should consider a buyer's perspective -- Asking Price plays a significant role in determining which properties will be considered by a prospective buyer.
  • Unique Characteristics of your home. The value of your home is greatly based on the hard facts about your home, such as number of bedrooms and baths, lot size, living space, the total number of rooms, and other features.
  • Condition and Competition.The condition of the property affects the price and speed of the sale. As prospective buyers often make purchases based on emotion, but this not only factor, especially, if many houses previewed before by buyers. Optimizing the physical appearance of your home will maximize the buyer's perception of value.
  • Timing and Economic Conditions. Property values are affected by the current real estate market. When properties are selling quickly, there is pressure on buyers to present stronger offers. And when a lot of inventory there are sellers under tremendous pressure to sell fas. Economic conditions may impact the availability of financing and impact the number of qualified buyers.
  • Your Motivation. Your timing requirements for the completion of the sale, may impact the final price that you accept.
  • Marketing. The amount of positive exposure that your property receives can potentially affect the demand for your home. In ideal circumstances, multiple buyers will compete for your home, which is, again, a strong possibility in so-called "seller's market".
  • Negotiating Skill. The negotiating skill of your Real Estate specialist may have significant impact on the final return that you receive from the sale of your home.

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Factors That Are Not Affecting the Selling Price

Whatever you, as a seller, like it or not, all factors below are not affecting the value of your property:

  • The price that you originally paid for the property.
  • The amount of cash you need from your sale.
  • The profit or returns that you expect to receive from the sale of your property.
  • The amount that you have invested in property improvement, except some major ones like kitchens and bathrooms.
  • The tax assessed value of your home.
  • What other sources have told you your property is worth, including friends, appraisers, and other real estate professionals that may have their own agenda in mind.

The Significance of Timing

When your property is first placed on the market, it attracts immediate interest from the real estate community and from potential buyers. Those first few weeks usually your property's prime selling time.

  • As a property comes on the market, there is a lot of existing buyers who have been actively evaluating properties. In the first few weeks that your property is on the market, interested buyers will be excited to see if your home is what they've been searching for. If your home is priced right and shows well, you have the greatest opportunity to sell your home at this time.
  • When you price your home too high in the beginning, you may ultimately need to drop your price below market value in order to attract buyers back to your home, and the property may eventually sell below market value.
  • It is critical to have your home price competitively at the time I place your home on the market. Price and street appeal directly affect time on market. A home that sits on the market for too long raising a questions if everything is OK with the property.

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