It doesn’t matter what kind of housing market you are in, a home/property will always have some value. That value may not necessarily agree with what you believe to be true, but it does have value for which someone else is willing to give you money or some other form of compensation. That said, it’s crucial to remember there are 4 key factors that play a role in how quickly your home sells and for how much before you put your home on the market. Condition, Location, Marketing, and Price. Three can be controlled and one cannot. Lets take a look at each one in more detail.
Condition – somewhat self-explanatory, but the way a home was kept up adds or takes away value by how much the new owners will have to spend to bring the house up to today’s standards. A significant amount of deferred maintenance will typically bring down the value of a home since the prospective buyers are going to subtract such costs from a fair market value of the home. (Controllable)
Location – its an age old cliche, but bears repeating… location, location, location. Good or bad neighborhood, proximity to schools, shopping, parks. What is the “walk score” for this home? Is it surrounded by a high number of rental homes? Does it have an HOA? Good questions to ask. Even if you lived in the nicest house on your street, if the surrounding neighborhood is unattractive, your home’s value will suffer for it. This is the only factor you have little or no control over. (Not Controllable)
Marketing – The way a home is marketed brings value to your home. Its important to expand on the home’s strong points both verbally and visually. Taking out ads, posting in the Multiple Listing Service, and taking as many photos and video is critical. There is an infinite number of ways to market a home, but some tools involve using the internet, having a yard sign, and holding open houses. (Very Controllable)
Price – Lastly we have price. If all three of the above factors are ideally positioned and you still have no offers, its likely the home is priced too high. Consult a Realtor who has an in depth knowledge of the area to help you find comparable home and determine a fair price to list your home. He or she will help you understand what an appropriate price is without scaring away potential buyers or put you in a position that has you chasing the market. (Very Controllable)
For more information on this and other topics feel free to contact me or visit my website. I also provide free estimates of your home’s current value.