When determining the listing price for your Medford home, a number of different factors are taken into consideration. While there is no cut and dry formula for determining the price, knowing more about how the price is determined will help you feel more confident about the price that you and your real estate agent determine to list for your home.
Factor #1: Comparable Sales
Comparable sales, also referred to simply as “comps,” refers to how much other homes that are comparable to yours were listed for and sold for on the market. When choosing comps, you need to consider location as well as whether or not the property has characteristics that are similar to your property. Important comparable factors include:
- Lot size
- Square footage
- Year of construction
- Number of bedrooms
- Number of bathrooms
- Other buildings on the property, such as storage space
Homes used for comps should also have been sold within the last six months in order to be more closely related to your property. Of course, the list price of other homes currently on the market and the number of days they have been on the market will also help to determine the best list price for your home.
Factor #2: Location
Everyone has heard that the first rule of real estate is location, location, location and this is definitely very true when it comes to determining the value of a home. Several different factors are considered in regard to the location. Some of these include:
- Proximity to amenities, such as schools, entertainment and employment opportunities.
- Whether or not the home is on a busy street or a quiet cul-de-sac or something in between.
- Overall community reputation.
- Community economic and crime statistics.
In addition to helping to determine the value of your home, location will also play a role in determining the comps to pull. It is important to be realistic about the home’s location and the impact that location has on the home’s value.
Factor #3: Condition
The condition of your home will have a significant impact on its value, as buyers will be willing to pay far more for a home that has been well-maintained. If your home is not in good shape, you will either need to make the necessary repairs or put it on the market for a lower list price. Keep in mind that any repairs or refurbishments that you make, such as replacing old carpeting or installing a new H-VAC system will help to increase the value of your home. On the other hand, you want to be sure to make improvements that will give you a strong rate of return on your investment. Consulting with your real estate agent will help you to make the smartest updates and changes to get the most bang for your buck. Once you have taken a look at all of your options, you will be better able to determine which updates, if any, are worth making to your home in order to increase its value.