In our last episode, we talked about the price per sqft. I consider this a rudimentary approach to snagging the best price for your most valuable investment.
Here’s a better way.
I call it the what you can get theory and combine it with the price per square foot approach.
The Top 4 Elements of Value That a Buyer Will Use to Determine Value Are
Price - can I afford it?
Location - is it close to work, schools, shopping.
Condition - Does it deliver what I need on a timely basis? is it ready, or must I move across the country to begin repairing it before I can enjoy living in the home?
Availability of Similar Properties (supply & demand) - how many do I have to choose from? Is it rare or do we see homes like it all of the time?
Aesthetics - Style & Type
Further, there are very important brownie points that make a home more or less distinctive when it comes to pricing.
- Home Size larger square foot homes sell for a lower price per square foot.
- Smaller square foot homes sell for a higher price per sqft.
- Generally speaking, one-story homes sell faster than two.
- Lot style - double lots, larger lots; culdesac lots, lots next to greenspace can demand a higher value.
- Homes that have been remodeled are more desirable (Bc they are ready to move into).
- Homes with interior upgrades such as custom window coverings and paint colors, plank flooring, demand a higher price.
- Homes with exterior features like additional landscaping, pavers, and walkways pergola’s and patios say buy me.
In summary:
Use Average Price per square foot as a guide.
Presentation is Key - Condition is a strong determinant of value (homes in best condition often sell first) Buyers go crazy over homes that look more expensive than their price tag).
Consider the number of similar properties available and factor in location Use a wider radius of what is available - not just your neighborhood.
Utilize a realtor to justify additional points relating to your home’s uniqueness.
Make sure it makes a statement that begins with clean and uncluttered.
Get fancy after you check those two boxes.
Listen to our quick bonus episode Real Estate Story on pricing and learn what really happens in the market.
In our next Podcast, we’ll examine the Top 10 characteristics Characteristics of Today's Homebuyers.
To bring you up to date on the trends in the market See you soon!
