How to Determine What Your Home Is Worth

📢 Thinking of selling? Pricing your home RIGHT is everything! 🏡💰 In today’s market, strategic pricing based on supply and demand can mean the difference between a quick sale and months on the market – and that can mean 10’s of thousands of dollars to you. Watch this video to learn how to price your home like a pro! 📈✨

How do you determine what your house is worth? If you’re considering selling and aren’t sure how to price, or you’re considering buying and want to know what to consider when offering on a home, then this video will help.

Hi my name is Kimberly Crouch with EXP Realty and I’ve been in real estate, finance, and accounting for over 25 years. I’ve sold many homes in my career. Here are a few things to consider.

The market. One of my many jobs as a realtor is to be a strategic pricing expert. That means I need to be able to tell you how to price your home strategically so that its sale or purchase accomplishes your goals. We need to consider your objectives in terms of timing, price, and sale process as well as what is going on in the market in terms of supply and demand. Are we in a buyer’s market, a seller’s market, or a stable market, and which way is it moving, up or down? This will affect whether or not we price above or below the last sale and we price accordingly. Although similar to giving you a home value, which is what an appraiser does, it’s a little bit different.

Next we look at the home. The size, condition, and location. All of these have a huge effect on the price. You can’t really compare a home that is 2,000 sq. feet to a home that is 4,000 square feet – they just aren’t comparable. In most cases, if there are enough comparable homes, an appraiser likes to go anywhere from about 200 to 400 sq/ft. difference both higher or lower to use as comparables to determine pricing. If there isn’t enough inventory, an appraiser will make adjustments in the evaluation of what the home is worth based upon the difference in size.

Now let’s think about condition. Think about this in relation to a car, you can’t compare a 20 year old Toyota Tacoma to a brand new one. Well a home is the same. When pricing a home you have to look at things like the home’s age, how upgraded it is, the size of the lot, what the landscaping like – mature trees or brand new construction.

Finally location – an ocean front home that is similar in size and condition just isn’t comparable to a home one mile inland from the coast. Are you in a great location with easy access the beach or downtown, to freeways, the airport, and shopping, how does your area compare to others, are there any nuisances like power lines, heavy traffic, or ongoing road expansions and projects, or anything else that could be considered undesirable.

Remember, when pricing, it’s natural to feel like your home is worth more than everyone else’s because we have an emotional attachment to it. But we have to look at all of the variables objectively.

Pricing is so important – under pricing can cause you to lose money and over pricing can cause you to sit on the market. In a downward market, that can potentially cost you tens of thousands of dollars that you could have received if you had started off priced correctly.

This is Kimberly Crouch with EXP Realty, authentic coastal luxury, at every price point.