Numerous Factors Determine How Much A Home Is Worth

One of the hardest parts in determining the sales price of your home is setting aside your personal bias about how much you think it's worth. After all, your home is more than just a commodity to you. That's why it's so important to have the help of a professional, a real estate agent who knows your particular neighborhood and current market trends.

Comparison Pricing

To determine a home sales price, the agent takes several factors into account: the condition of the house, number of bedrooms and baths, and the style of home, just to name a few. Then those particulars are compared with similar homes that have recently sold in the same area. Even in a subdivision with just a few different home models, additions and remodeling can change the pricing of homes. In starter-home communities, for example, it's not unusual to see owners add a second level or addition to the house, making it larger and more valuable than other neighborhood properties.

High Or Low?

Agents also look at which way the local market is headed. If prices are dropping, the price of your property should reflect that trend. The same is true for an accelerating market. The regional economy can also affect price. If new jobs are coming into your area, there will be higher demand for your home. If people are leaving town because jobs are disappearing, you'll face a buyer's market.

Additions Add Up

Neighborhood open houses can show you what homes in your community are selling for and what other owners have done to the interior of their homes that might affect price. Of course, the best way to determine a home's value is by finding a buyer who is willing to pay what you want for the property. Once you and a buyer agree on a price, then you've determined the true value of your home.