It seems like home prices are arbitrary these days, with luck playing more of a role than any other factor. How can I possibly know at what price I should list my home?
One of the best ways to determine the true market value of your home is to look at how much comparable homes in your area are selling for. You’ll want homes that are similar in size and features and that have sold recently under current market conditions. Consider lot location, size and view. Consider the home’s square footage and the number of bedrooms and bathrooms. Garages are also a factor, so don’t forget to include those in your comparisons.
It’s also important to weigh the value of improvements. A home with a 30-year-old roof likely will require a new one in the near future and that could mean a hefty investment. Likewise, a home with newer, energy-efficient windows could save you money over time. A home could be the same precise size and even layout as your home, but if it isn’t well maintained, it won’t be worth as much.
If you’re thinking of putting your home on the market, a qualified real estate agent can provide you a comparative market analysis. That kind of analysis can provide insight for the above comparisons. Plus, seeing how long a property was on the market can also tell you whether it was priced right and lend clues about local supply and demand.