When you are selling your home, it is a good idea to price your home accurately to help it sell fast. There are several factors that can determine your home's value, and when you are putting your home for sale on the market it can be helpful to understand what drives home prices up and down. Here are three factors that can affect your home's value and sale's price.
Recently Sold Homes in Your Area
One of the main factors that determine the value of your home is other homes that have sold recently in the same area or location as your home. If you are selling your home with the assistance of a real estate professional, ask them to complete a market comparative analysis to analyze recent home sales. Your agent will be able to run a report of your area and compare homes prices for homes that are similar in several ways to help determine your home's value.
During the analysis, your agent will search homes with similar square footage, number of bedrooms and bathrooms, and similar styles. If one of the homes in the analysis was a home in need of a great deal of repairs, or physically distressed, for example, this home will bring down the average value to the area and similarly affect your home's value.
This same process is used when a buyer is considering making an offer on your home. They will look at the history of recent homes sold in your area and use the figures to calculate and gauge an offer for your home.
Homes For Sale in Your Neighborhood
When there are a large number of homes for sale in your neighborhood, this can affect the value and sales price of your home. Just as in any market, when there is more inventory than there are buyers, the demand for homes will decrease. As a result, your home's value can decrease slightly.
Inversely, when there are a low number of homes for sale in your neighborhood, there may not be enough inventory to fill the needs of all the home buyers in the market, which can result in a bidding war for homes, causing their prices to go up.
Rising Mortgage Interest Rates
When mortgage rates rise, it can also have an affect on the sales of your home, especially when your home is in the lower end of the market. According to a recent article, when mortgage rates rise it can cause the demand for homes become weaker.
So, when you are selling your home and it is priced on the lower end of the market, this can cause the demand for your home to go down and can affect the price it eventually sells for. When there are less buyers in the market, the demand for your home goes down and makes its price decrease.Share
13 April 2018
I have always been someone who is passionate about making the world around me more beautiful, which is probably why I was drawn to real estate initially. I really wanted to create a place where me and my family could spend a lot of time together in a peaceful, relaxing place, so I started looking for places in my area that were fit for the job. Within a few months, I was able to find an incredible property that was within my price range, so I purchased it as soon as possible. This blog is all about choosing beautiful real estate.