Factors That Affect Home Market Value


When Selling a Home, Many Factors Affect Market Value and the Eventual Sale Price

Location

  • One of the most important factors that affect value is location.
  • Generally speaking, comparable homes that are in Brookside, Lincoln Village West, Spanos Park or on the water in Stockton sell at a higher price. You can install all of the Brazilian cherry flooring and stainless appliances you want, but you cannot change the location of a home!

Competition

  • As the inventory and days on market in the Stockton area increase, smart agents and sellers are reassessing their price every 15-30 days. New listings are being priced at or below the others currently for sale. This is smart pricing on the part of the new listing but has a negative effect on the other homes listed for sale.
  • For sellers that listed their home previously, they are now forced to reevaluate their pricing in the face of the new competition. If they do not adjust their price accordingly, any potential buyer is likely negotiate an offer with the better-priced seller.

Timing

  • As the real estate market cannot be manipulated, a flexible marketing plan should be developed which analyzes the current marketing conditions and individual features of the property.
  • The current real estate market affects property values. In a "hot" market, homes tend to sell more quickly and for a higher price. Likewise, in a "soft" market, the sales price will likely be less and the market time longer.

Condition

  • The condition of the property affects the price and speed of the sale. As prospective buyers often make purchases based on emotion, first impressions are important. Optimizing the physical appearance of your home will maximize the buyer's perception of value.
  • Improvements the owners have made to the house. Updating kitchens, replacing flooring, repainting walls, and adding landscaping can add to the value of a home. However, sometimes homeowners can spend too much on a house and not get all of their money back when it comes time to sell the house. Before making drastic improvements to your house, be sure to talk with your real estate agent so that you use your money wisely on your investment.
  • A staged home will show better than competing homes for sale in you local market, allowing you to sell faster and for more money.
  • Experienced buyers look for important conditions like paints, floor covering, walls, ceilings, floors, doors and windows. Buyers may also pay close attention to the plumbing, electricity work, repairs, bathrooms, kitchen, and so on.

Price

"Couldn't we just try it at this price for a couple of weeks?"
  • The majority of prospect activity on a new listing occurs in the early period of marketing a home. This happens because real estate agents maintain an inventory of active prospects that have been cultivated over time. When a home is newly listed, REALTORS arrange for them to see it. Once the active group has seen the property, showing activity decreases to only those buyers new to the market. For this reason it is important that sellers have their home in the best condition and at the best price at first exposure to the market.
  • By the time an overpriced home is finally reduced to the market, it may be too "aged" for buyers to offer full price. Have you ever asked how long a home has been on the market? What conclusion do you draw?

THE WRONG PRICE ATTRACTS THE WRONG BUYERS AND THE RIGHT BUYERS WON'T SEE IT.

Marketing

  • The marketing plan that your agent executes on your behalf will determine the amount of interest that is shown in your property. Your agentís level of skill and expertise in the negotiating process will affect the amount of money youíll be able to get for your home.
  • Many people put more thought into what theyíll have for dinner tonight than who they will trust to market their most valuable asset. Donít you make the same mistake!

Real Estate Books

Books to assist you in selling your home

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