The first question any seller asks when considering putting a house on the market is, “How much is my home worth?”  If you’ve been in your home for years and have built equity chances are your home is worth more than what you paid for it.  Determining the value of your home takes several factors into account and something this REALTOR in Locust Grove does all the time.

Factors that Determine a Home’s Value

CMA

Before meeting with a seller, a real estate agent should complete a comparative market analysis (CMA) in order to determine the market value of a house.  A CMA compares the features of the home, condition, square footage, lot size, and age to at least three other homes in the neighborhood of similar type that just sold.  Using this information, a REALTOR in Locust Grove can suggest a market value for the home.

Market value is how much your home could sell for if it hit the market today.  Market values can change, so if you meet with an agent several months prior to listing your home, you may need an updated CMA.

Learn more about CMAs.

Knowing the market value of a home is just part of what a seller needs to know in order to determine a list price.  Personal goals and the local housing market can also influence list price.

Personal Goals

Because the reason for moving is different from seller to seller,  the time a home spends on the market may be more valuable to some sellers than others.  For example, if a seller needs to move immediately due to a change in employment and needs the proceeds from this home sale to go towards a new home, then the seller may decide to price the home slightly below market value in order to attract more buyers to home and sell it faster than the average days on the market.

On the other hand, a seller may need to get as much equity out of the property as possible and this may mean pricing the home at the higher end of its market value range.  When doing this, a seller must accept that the home may not sell as quickly.

It is important to talk openly with your REALTOR in Locust Grove about your motivation for moving so your agent can help you price your house accordingly.

Understanding the Local Housing Market

The statistics agents get from the local housing market can help to determine a list price for a home too.  If you are in a market where there are more buyers than sellers, then you may be able to list your home at the higher end of its market value.  If you are in the opposite market, then pricing it at the lower end of the market value range may help the house stand out from others on the market.

Being aware of the average days on the market for a home is also important.  This helps sellers align their expectations with what is really happening in the community.  For example, if the average number of days on the market is one hundred, then expecting a home to go under contract in fifteen days is going to lead to seller disappointment.

Once a seller has the information from all three of these factors, a listing price can be determined.

If you are curious about what your home in Locust Grove or the surrounding area is worth, then I can help.  By providing me with some information about your home, I will be happy to complete a CMA for you.  In order to give the most accurate pricing, I do not use an automated CMA model.