Unraveling the Mystery of Home Valuation

CENTURY 21 Mertz & Associates February 21, 2021

When looking for the house of their dreams, what do home buyers care more about than location? Price. No matter how perfect the house is, it won't nab buyers if the price isn't within their budget. Miss the bar by a thousand dollars, and your home could go unsold for an extended period of time. If you're hoping to add your home to the list of Lewisburg homes for sale, having an accurate grasp of your home's estimated market value is essential for pricing it right and making it appealing to the target pool of buyers. Our real estate agents can help you cut through the haze and find that magic number. Here are considerations when valuing a home:

Comparative Market Analysis – Comparative market analysis involves comparing your home to other properties similar to yours in size, location, and condition. These properties fall into three categories: recently purchased, currently for sale, and those which failed to sell while listed. Houses that sold show what buyers are willing to settle for. This is the price range you should pay the most attention to because it has resulted in a successful sale. Conversely, houses for sale show the amount sellers are hoping to get. It also determines the level of competition in the market. Houses that failed to sell reveal a price ceiling.
Market Conditions – The listing price also depends on supply and demand. If there are a lot of buyers clamoring for homes, it's a seller's market. Conversely, if there are many homes on the market but buyers are nowhere to be found, it's a buyer's market. Properties will likely be overpriced in a seller's market and underpriced in a buyer's market. Also, your real estate agent will consider how long homes are sitting on the market before they get sold, the impact of mortgage interest rates, as well as the state of the economy and job market.
Home Size and Usable Space – A home's size has a major influence on its value with many buyers looking specifically at price per square footage. The price tends to be higher for bigger houses. Besides square feet, a home's usable space will also determine its value. What matters most is livable space, including the number and size of bedrooms and bathrooms. You'll also have to consider the home's layout. Typically, traditional layouts appeal to more buyers and carry more value than obscure layouts.
Age and Condition – Generally, newer homes appraise at a higher value because they require less maintenance. The fact that major systems of the house are newer and less likely to break down can be appealing to many buyers. Besides age, many buyers will pay top-dollar for a well-maintained, move-in ready home. They want to avoid any major expenses following the sale. So, your older home may sell for just as much as a new home if it's recently been renovated. Big scale improvements such as rewiring, new roof, new siding, finished basement, new kitchen, or an extension can increase your home's market value.
Location – When your real estate agent determines your home's value based on its location, they're looking at employment opportunities, quality of local schools, and proximity to entertainment, shopping, and recreational centers. For instance, homes near cities or shopping locations tend to be worth more than ones far away from everything. Your home's overall value also can be impacted by proximity to utility lines, highways, and public transit.

Whether you're selling or looking for Danville homes for sale, Century 21 Mertz & Associates can help. Our real estate agents have extensive experience with property valuation and appraisal in the local area. Contact us today.