Having the correct real estate pricing is vital, whether you’re a homeowner looking to sell or a homebuyer preparing to make an offer. While property values are estimated annually for tax purposes, a real estate company should determine the fair market value before a house goes up for sale. Here are the most important factors a real estate agent considers when determining fair market value.
- Comparable property sale prices: To formulate the initial ballpark price, agents and appraisers assess what similar properties in the area have sold for recently. They also consider what the property in question has sold for in the past.
- Current market conditions: Past trends can only tell real estate agents so much. The current market is even more influential, shaped daily by supply and demand, mortgage interest rates, the state of the economy, and other factors.
- Neighborhood: A home’s location has a tremendous impact on its appeal. Factors such as neighborhood cleanliness, school districts, and crime rates are all significant considerations.
- Nearby amenities: The home’s proximity to shopping, dining, and public transportation matters to potential buyers—and so does any nearby negative features, such as noisy highways, landfills, or power plants.
- Size: Finally, it’s time to start looking at the actual property itself. Bigger houses tend to sell at higher prices, of course, but flexibility, an appealing layout, and the potential for upgrades are also critical factors.
- Age and condition: Newer homes tend to cost more per square foot because they come with less maintenance. Still, well-maintained older homes may sell for just as much. The overall condition of the foundation, structure, plumbing, electrical, and HVAC systems is what matters most.
- Home improvements: Homes built several decades ago may benefit from having their fixtures and finishes upgraded. Modernizing the kitchen and bathroom is often a smart move because these are the rooms homebuyers tend to care about the most. Other common upgrades include replacing the windows and doors, installing a deck, and putting in high-quality laminate floors. Well-planned and executed renovations can boost resale value by tens of thousands of dollars.
- Yard and home exterior: The way your home looks on the outside is nearly as important as how it looks and functions on the inside. Factors such as the home’s architecture, exterior lighting, and landscaping combine to create the overall curb appeal. Sprucing up a home’s exterior can help it garner more attention and even increase its selling price.
These are just a few characteristics real estate agents look at when valuing a home. If you’re wondering how much you can get for your house, or you’re unsure if the home you want to buy is priced fairly, reach out to Vutech | Ruff, Corcoran Global Living. We have over 60 years of combined experience working in the Columbus, OH real estate market, and our team would be pleased to help you navigate the home buying or selling process. Call us at 614-897-0618 or contact us online to learn more.