When pricing your home, one of the best ways to figure out what that price tag should be is to look at comparable sales. Of course, there’s rarely a perfect apples-to-apples comparison, so a pricing decision often relies on comparisons to several recent sales in the area and a number of other things to consider. Here are five things to look for in a sales comparison.
- Location: You’ve hear it… Location. Location. Location. Homes in the same neighborhood typically follow the same market trends. Comparing your home to another in the same neighborhood is a good start, but comparing it to homes on the same street or block is even better. On the flip side… If your home is on the edge of town don’t compare your home to a home that is close to the downtown area.
- Date Sold: It varies by location, but housing markets can see a ton of change in a short time. It‘s best to use the most recent sales data available. It’s important to remember that an area may be hot today but gone tomorrow.
- Home Build: Look for homes with similar architectural styles, numbers of bathrooms and bedrooms, square footage, and other basics.
- Features and Upgrades: Remodeled bathrooms and kitchens can raise a home’s price. Be sure to look for similar bells and whistles. If you can find pictures that really helps to give you an idea if your home has a similar aesthetic to the homes you are using to compare it to.
- Sale Types: Homes that are sold as short sales or foreclosures are often in distress or sold at a lower price than they’d receive from a more typical sale. These homes are not as useful for comparisons.
Pricing your home can be very overwhelming. Hopefully these tips make it so much more helpful when the time comes to put a price tag on a home that has so many priceless memories. Go into it like you are the buyer, buying your home all over again for the first time. Remember how analytical and critical you were back then? Think like that! Then call a professional who really knows the area and can really detail and layout the comps for you to see and understand. Pricing your home doesn’t have to be hard. Especially when you have an awesome pricing agent on your side!