Criteria for Pricing a Home
When you put your home up for sale, one of the best ways to determine the asking price is to look at comparable sales.
It’s difficult to find 2 houses that are the same in value, so a pricing decision often relies on comparisons to several recent sales in the area. Here are five criteria to look for in a sales comparison.
⦁ Location: Homes in the same neighborhood typically follow the same market trends. Comparing your home to another in the same neighborhood is a good start, but comparing it to homes on the same street or block is even better.
⦁ Date of sale: It varies by location, but housing markets can see a ton of fluctuation in a short time period. It‘s best to use the most recent sales data available.
⦁ Home build: Find comparisons to homes with similar architectural styles, bathrooms, bedrooms, square footage, and other common features.
⦁ Features and upgrades: Remodeled bathrooms and kitchens and other less obvious upgrades such as new roofing or a HVAC system can raise the price of a house, so be sure to look for similar upgrades and features.
⦁ Sale types: Keep in mind that houses that are sold as short sales or foreclosures are often in distress and sold at a lower price than they’d receive from a typical sale. These homes are not as useful for your purposes and should not be used as comparisons.