What to Consider When Pricing Your Home

Home pricing can be a touchy subject. Every seller wants top dollar for their home, and every buyer wants the best deal they can get.  

As a Realtor, it’s important to price a home correcrtly.  If the price is too low, the sellers might get upset, or even worse, lose out on potential profit. If the price is too high, the home could sit on the market with little to no interest.  When a home sits on the market, it becomes less and less desirable.  It’s assumed there’s a major defect if it appears that no one else wants the home either. When pricing home, the four major elements to consider are: location, comps, condition and upgrades.  

The home’s location is generally one of the most important factors.  The desirability is going to be largely dependent on the schools, crime statistics and economics of the town.  Within the area, things like walkability, proximity to a town center and being on a corner will also play a role.

Comparing your home to recent sales in the neighborhood is a great way to help estimate the value.  When looking at comps, the closer to the home in question, the better.  In cities like Boston, it’s pretty easy because often times Realtors can compare transactions within a single building.  Aside from looking at homes in close proximity, it’s also important to consider homes with similar square footage, construction date, and style.   While it’s important to look at recently closed transactions, it’s also a good idea to look at homes currently on the market in your area.  That’s your competition.

The condition of the home is pretty straightforward.  A home that is in great condition is going to be more valuable than a home that needs work.  I recommend that my sellers have a home inspector come through before listing the home, so they can get an idea of anything that should be taken care of.  As a seller, you don’t want to come up on your buyer’s inspection only to find out your HVAC needs to be replaced.  

The last factor we’re going to look at is how updated the property is.  Today, most buyers are looking for new, clean and sleek design with a certain level of amenities.  Updates and upgrades are going to include things like, a brand new kitchen with all the appliances, a pool, wine cellar and things like that.  Essentially, things that make your home stand apart from others on the market, whether that be its design or its features.

If you’d like to get an idea of how much your home is worth, email me!  I can be reached at willy.charleton@nemoves.com or 617 528 8461.