Determining the worth of a property takes into many considerations with the location, land, improvements, landscaping, outbuildings, and other components of the house. When evaluating a home to place on the market for sale, there are several key factors to consider.
The location of the property plays a role in pricing. Desirable neighborhoods, lake front property, mountain view, close distance to amenities are just a few examples of value created for a property. The saying goes in real estate is “Location, location, location!”
The square footage of the house, bedrooms, bathrooms, garage space, green technologies are all evaluated and compared to similar properties that have sold in the area.
Upgrades and materials used in the house are also considered for value. Hardwood flooring, granite or quartz countertops, tile flooring, updated cabinetry newer appliances add value to a property. Owned solar panels are also considered an asset that adds value to the property.
Since VT has many rural communities, there may not be exact duplicates to use as compatibles. Therefore, similar homes in or outside the area are used to compute a home’s potential worth.
This information is used to compare to homes that have already closed. This is typically what appraisers use to evaluate the property for the mortgage company. Homes that are currently under contract are also used. Even though the final sale price hasn’t been disclosed yet, the asking price and days on market can be used to estimate if the house sold at, below or above the asking price.
Expired listings can be used to evaluate pricing. If the property didn’t sell, there is a reason. The underlying issue might be buyers didn’t perceive value on the property. Price tends to be the underlying issue. For the right price, any property will sell.
All this information is used to calculate a potential value of the property. It should be noted, these are opinion of price and may not necessarily reflect actual market value. Market value is established once the home is on the market. Either the home receives multiple offers in a short period of time, gets moderate showing activity or just sits there with little or no showings.
Each one is an indication of buyer interest and value of the property. Therefore, it’s important to put your best foot forward with a competitive pricing when first placing it on the market.