Getting the right price
What Is Your Home Worth?
The question we hear most from home sellers is, “How much is my home worth?” While it’s a great question, it comes with a complicated answer as a home’s value is a moving target based on several fluctuating metrics. These include:
- Housing market conditions and trends
- Sales of similar homes in your neighborhood
- The average length of time homes are on the market in your area
- Condition and status of the home
The good news?
When it comes to pricing your home for sale, your Paris Group Realty, LLC agent knows what it takes to get your home noticed. To get there, we’ll first create a custom analysis of your property. Then, we’ll complement that data with our knowledge of Portland’s neighborhoods and market trends. Finally, we’ll recommend a listing price that meets your personal goals and gets your home sold.
Factors to consider
What Contributes to a Home's Value?
There are many factors that contribute to your home’s value. Overall, the value is based on what buyers are willing to pay. Every buyer is different – the features that are important to one family may not be important to another.
Influences on the Value of a Home
“Location, location, location” is a popular mantra for a reason! Location is one of the most important factors for many buyers.
Proximity to jobs, good schools, shopping, entertainment, public transportation, and recreational opportunities are all highly valued.
How comparable homes in your neighborhood sell is a telling indicator of how your own home will sell. Of course, there are different types of comparisons that can be used, and no two comps will be the same — especially when it comes to details, such as having a scenic view. Your agent will analyze a variety of comps prior to giving you a recommended list price.
Home size and space
As a general statement, larger homes tend to sell for more money, so your home’s square footage matters. It’s not just the overall square footage that’s important, though, it’s the space that is considered usable. Keep in mind, attics and unfinished basements usually aren’t counted towards usable square footage.
Age and condition
New homes tend to appraise at higher values since crucial aspects, such as plumbing, electrical, and roofs, are newer. Since newer parts of a house are less likely to be repaired, a potential buyer sees long term savings.
Updates and Renovations
Remodeling projects can increase your home’s value, especially if you’re replacing outdated features. But the actual added value varies by market and, to some extent, the size of your home. For example, adding a bathroom often increases values more for small houses than large houses. How a home has been cared for is an important factor as well. For example, two homes built identically, and side-by-side could have vastly different prices based on the care of the home, for example, if new plumbing or a new roof has been installed.
What is a Comparative Market Analysis?
A comparative market analysis (CMA) is a report prepared by a real estate agent that provides data comparing your property to similar properties in the marketplace. The CMA process takes place before your home is listed for sale and is a good assessment of your home’s potential selling price.
To develop a CMA, the first thing an agent will do is inspect your property
Generally, this inspection won’t be overly detailed. Your agent is unlikely to crawl under the house to examine the foundation. Also, the home need not be completely cleaned and ready for an open house. It should be in a place that the agent can make an accurate assessment of its condition and worth. If you plan to make changes before selling, this is the time to inform your agent.
The next step is for your agent to find information on comparable properties
This data is usually available through the Multiple Listing Service (MLS), but an experienced agent will likely also know of properties that are on the market or have sold without being part of the MLS. These details round out the picture and give your agent a broad idea of your property’s value in the current market. Paris Group Realty, LLC agents look at the past six months’ worth of data within one mile. Keep in mind that a CMA is not an appraisal, which must be performed by a licensed appraiser.
CMAs are not only for prospective sellers. Buyers should consider requesting a CMA for properties they are seriously looking at to determine whether the asking price is a true reflection of the current market. Owners that are upgrading or remodeling can benefit from a CMA when it’s used to see if the intended changes will “over-improve” their property compared to others in the neighborhood.
Is it a Good Time to Sell?
Are you considering selling your home but worried the timing isn’t right? There are a few considerations to keep in mind as you’re making your decision:
Do you need to move?
If you need to move due to a new job, a lost job, or because you’re in a starter home and need more space, then it’s always a good time to sell. Certain markets and economic situations can always make selling more challenging but with the right agent, it’s possible to meet your goals and sell.
Are interest rates low?
Mortgage interest rates have been historically low recently and they’re expected to stay relatively low for the near future. As long as rates stay affordable, it’s a great opportunity to sell.
What’s the local market like?
Is your region seeing strong demand for homes but little available inventory? That’s certainly been the case here in the Portland, Oregon, area and it doesn’t look likely to change any time soon. If buyers are desperate for properties, then it’s a good time to sell as long as you have a viable plan for where you’re going to live next.
When shouldn’t I sell?
If you’ve just refinanced, are worried about affording a new house, or facing an uncertain financial future, you should probably hold steady in your current home for a bit and reconsider moving once your situation has changed.