When it comes to pricing a home for sale, many factors come into play. If you’ve been curious about this process, look no further. Here’s how it works.
Health of the Home
This one may be a bit more obvious than other factors. A home that has been meticulously maintained throughout the years could be worth more than one that has been neglected. A recently remodeled kitchen or brand new hardwood floors, or other improvements are taken into consideration when determining price.
Finding hidden health issues requires deeper inspection. Even the most beautiful homes may hide major plumbing or electrical issues that will ultimately impact the price tag. You may even discover that the lot has a forgotten easement that can curb its building potential—and value.
You may become aware of other issues during the inspection phase of escrow. While your REALTOR® will do their homework to make sure the property is a fit before you plunk down some cash, this added step will help ensure the home is right for you.
Location, Location, Location
If you’ve shopped for homes, you’ve probably researched what’s in the surrounding neighborhood. While being closer to the beach is a no-brainer for price impact, a nearby busy street or a large school are taken into consideration as well.
Comps in the Neighborhood
A comparable market analysis, commonly known as a “comp” in the real estate industry, is the process of studying other homes that have sold in the same area as the “subject property,” the home that is being priced.
For comps, not just any sold home will fit the bill. Not only does the home need to be within a certain distance and in a similar neighborhood, they also need to be comparable in terms of square footage and features. Active properties and pending sales are also incorporated to help determine the right price for a home.
The Wolf Team
At the end of the day, each and every property is unique and requires an in-depth look to determine its value. We specialize in reliably pricing San Diego homes. If you’d like us to take a look at your home, give us a call at 858-722-6847 or use our contact form. Talk to you soon!