Five of the biggest factors that contribute to pricing a home right include location, appropriate comparables, the particulars of the house itself, upgrades and updates, and the property's amenities. Now, there are certainly more things that contribute to pricing a home to sell, but these are largely incidental or are already part of the factorization. So, read on to learn more about the five most important factors that contribute to a home's market value.
The most influential factors that contribute to home pricing are quite obvious. However, home sellers still often overlook or neglect some of these very important elements. In order to price a home correctly and sell it quickly, you need to know what most accounts for its value. Here are the five biggest factors that contribute to home pricing:
Let's start with the obvious cliche, but also an irrefutable truth. Everyone has heard the old joke that real estate is all about three things, location, location, location. While it's become somewhat of a punchline, it's nevertheless one of the single most important factors that determine a home's value. Here's a great example of why that is so. Take an average three-bedroom, two-bath house from an ordinary neighborhood and place it on a beach, and its value skyrockets. Location matters, no matter where the home is located.
Here's another factor that people tend to get wrong without the help of a professional and that is choosing the right comparable properties. It is essential to choose properties that are most similar to your house. Otherwise, you're arriving at a price that is based on a false premise. In other words, if you don't choose the right comparables, you will not price your own property correctly and that will lead to all sorts of problems.
Home Size, Age, and Condition
Other characteristics that help determine a home's market value are its livable square footage, the age of the property, and its overall condition. Even if it's an older home but it's in good condition and is decently sized, that will bode well for the seller.
Upgrades and Updates
It's also important to place a value on the upgrades and updates you've done over the time that you've owned the property because they will also contribute to its value.
Finally, amenities are quite important to buyers and they do have an influence on the overall value of the home, so it's important to factor these into the listing price.