Are you curious about what goes into figuring out a home’s asking price? Knowing these factors will help you understand why your home is suggested to be sold at a certain price or why the home you are interested in may cost more or less than you think.
The current local housing market. How many houses are up or sale? What is their average shelf life? Also, what is the current inventory looking like? If there is less inventory than there are buyers, it is a seller’s market and prices will be driven up. If the number of homes on the market is greater than current buyers, then asking prices will be lower. You may think you are prepared in answering all of these questions, however, all of these statuses can change at any given moment and can change on a day-to-day basis.
The location of the house. Some areas are more desirable than others in factors such as schools, close by amenities like a shopping center, restaurants and natural features like mountains and lakes that we see here in Alaska. It even boils down as far as the exact street and address number the house is located on. What is to the left? What is to the right? Is there traffic noise on this street? Because on one street over, there is none. Yes, that specific.
Comps in the area. What have similar homes in the area sold for? What are they asking for? This market analysis plays a huge role in figuring out a listing price.
Home features. Is there something about this home that makes it unique to others? The size, square footage, new construction or not, one-story, two-story, ceilings and windows, driveway, backyard, pool…it all matters!
A home’s age and current condition. Older homes tend to need more work however, just because a home is older doesn’t mean that the asking price will be any lower – especially if the location is right.
If you are looking to buy or sell a home, it is important to have an experienced real estate agent on your side for many reasons, but this reason alone is a huge one. We are trained and knowledgable on the local housing market and are able to tell you if a house is priced fairly or not and to be able to help give you a competitive yet true asking price for the current market.