Why a Market Assessment Matters
When you are ready to sell your home, you may be wondering what the magic number will be. What is the right listing price? How much could it possibly sell for? You want to make sure you aren’t overpricing your home because this could lead to your home being on the market longer, ultimately resulting in money left on the table. You also want to ensure you aren’t pricing your home too low, as you may make less of a profit and buyers may think there are underlying problems with your home.
Similar questions may also stump buyers when they want to make an offer on a house. What would a competitive offer be on a particular home? You don’t want to bid too much because there is a risk that the home won’t appraise for such a high amount over asking. You also want to make sure that your offer stands out and that you have a fighting chance among the other bidders.
So, where do you start?
I start with a real estate market analysis. A real estate market analysis, or a comparative market analysis, helps determine the market value of a property in the present market. This is done by analyzing the home in question and then comparing it to the current market value of other similar homes.
How is a home evaluated?
When analyzing a home, the following characteristics should be evaluated:
- Location and neighborhood
- Construction age
- Finished Size or square footage
- Lot size
- Number of bedrooms and bathrooms
- Kitchen
- Bonus rooms
- Amenities and features
- Proximity to local amenities
- Recent or notable improvements
The amount of livable space in a home is one of the most important factors to consider when determining its market value—the more beds and baths a home has, the more it is worth.
What exactly is a “comparable property”?
Characteristics of comparable properties should match the property in question as closely as possible (e.g. same number of bedrooms and bathrooms, similar size, in the same neighborhood or community).
Sellers: How can you increase your home’s value?
According to the Remodeling Impact Report by the National Association of Realtors and the National Association of the Remodeling Industry, the top five projects that added the most dollar value to a sale in 2022 were refinishing hardwood floors, installing new wood floors, upgrading insulation, converting a basement to a living area, and renovating closets.
Other improvements you can make are painting (exterior and interior), landscaping, and updating your exterior doors. You can also give your kitchen an updated look without breaking the bank—you can update your cabinets’ hardware, update your backsplash, and/or update your lighting and faucet.
Buyers: What is most valuable to you?
When looking for a home, it’s important to make a list of features you can’t live without. Do you need office space? At least three bedrooms? Do you want a large yard?
Sometimes compromises may need to be made—perhaps you really wanted a patio, but the house that checks off all your other boxes doesn’t have one. It’s helpful to consider what can be added/changed, and what can’t be. For instance, the layout of a house isn’t an easy fix and would involve significant renovations.
If you’re looking to buy or sell, I offer a free comparative market analysis. Along with determining a fair market price for the property, we also would discuss the market’s current direction, mortgage rates, your desired neighborhoods (if you’re buying), and comparable homes in the area. Contact me today to get started! (781) 690-3837 [email protected]
