How do you determine what a home is worth?

If you’re considering selling and you aren’t sure how to price, or you’re considering buying and you want to know what you should consider offering on a home, well, then this post is going to help you.

I’ve been selling real estate for over 17 years, and I’ve sold over 2,000 homes in my career, so I know exactly how to price homes or how you should make an offer. Here are a few things that you should consider. Size, condition, and location are just a few. All of these have a huge effect on the price. Think about it. You can’t compare a home that is 2,000 square feet to a home that is 4,000 square feet. That would be like comparing a Maserati to a Hyundai. They just don’t match, and they’re not comparable.

You need to make sure that you’re comparing the size just like an appraiser would. In most cases, if there’s enough inventory, an appraiser likes to go anywhere from about 200 square feet to 400 square feet difference, both higher or lower, to use as a comparable in determining the pricing. If there isn’t enough inventory, the appraiser will have to make adjustments in their evaluation of what the home is worth based upon the difference in size.

Now let’s think about condition. Again, think about this in relation to a car. You can’t compare a Beetle to a brand new shiny car. Well, the home is the same. When pricing, you have to look at things like how upgraded is the home? How modern is it? What is the landscape like? Are you in a great location close to freeways and shopping and schools? How does your home in the area compare to others, and are there any nuisances, like power poles, heavy traffic, or anything else that could really affect the desirability of the home?

Also, if you’re selling, regarding price, marketing is really, really important. Remember when you’re pricing your home, it’s natural to feel like your home is worth more than everyone else’s because we have an emotional attachment. I do the same thing. But you’ve got to look at all the variables, because underpricing your home will cause you to lose money and so will overpricing your home. And as always, I’d love to get into more detail with you about what you should list your home for, what you should buy for a home. So reach out to someone on my team. Krista Mashore with Homes by Krista, and as always, make it a great home selling and buying day.

-Krista Mashore,

Broker and Owner Homes by Krista

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