5 Factors That Affect Home Value
Selling your home in any real estate market is determined by 5 important factors:
Your home will sell at the highest profit and in the quickest amount of time when combining these factors together.
Condition Of A Property Has A Significant Effect On Price
The condition of a property has a significant effect on price. You can demand a higher price for a home that has been updated with new flooring, cabinets, countertops and fresh paint over a home that has 30 year old original fixtures. If updating the home is not an option for you, at least ensure to do the following for maximum appeal:
Cleanliness Is An Absolute!
When a home is dirty the buyer will pay more attention to it than the features of the home.
They will leave with an impression that there is a lot of work to do and it will affect the offer if there is an interest in making one.
This includes dirty dishes, laundry, spills, sink and toilet stains, etc. Let's face it, clean homes sell faster!
Smell An Impression?
Nothing is worse than opening the front door and being smacked in the face with a bad smell. This includes cooking with spices or food that has a heavy scent.
I have had clients that have refused to go into a home due to the smell from the recently cooked food. Make sure to have plenty of ventilation when cooking while your home is listed, it is best to avoid foods such as broccoli, fish and curry.
Use simple aromas for a diffuser or plugin. The Best Smells To Sell A House are lemon, orange or fresh linen.
Are Your Rooms Messy?
It is great to have hobbies, interests and personality shown throughout your home except for when it is too much.
You do not want the buyers to focus on your stuff, it is better for the home’s features to stand out.
It is important the buyers to have the ability of envisioning themselves living there. Simplify, put away personal effects, excess furniture, hide countertop appliances and place towels and potholders in drawers.
Paint Colors That Sell Your House
Paint - If the inside or outside of your home has wild or non neutral colors put a fresh coat of paint on the walls. Most people are visual and do not have the ability to see for themselves the potential of what a home can look like when making it their own.
A couple I was working with had a disagreement over making an offer because the one party did not like the paint color. They loved the home, it had all the features they wanted except for the paint.
The main living room was bright green, it darkened the entire room and was hard for them to envision themselves entertaining. If the home was a neutral color, the point of contention would not have happened. Make it Fresh!
Look at the two pictures to the right. The top photo shows yellow and gray walls that dates the home and is very unappealing. Neutral colors make a difference!
The second photo features a bedroom with 2 colors as well. However these colors are not only neutral but soothing. The celery color accents the trim and wainscoating for a cozy warm feel.
Let The Light In
Light and bright sells! If your windows are covered, blocked off or has heavy drapes then open it up. This is very important for dark rooms that may otherwise look smaller.
Strategic lighting can help a room to look bigger, set a mood or draw attention to a focal point.
Dark rooms appear smaller, if you do not have a lot of natural light from windows then add a floor or desk lamp, use clear light bulbs that are relaxing or energizing for best effects.
Location Can Help Or Hurt
We have all heard Location! Location! Location!
Higher values are placed on locations in high demand or are limited and it directly affects pricing of your home. If your home was on a very small lot in a neighborhood it would not demand the price a home with a view of a lake or a golf course would.
The value on location is the same conceptually when determining the areas within a city, neighborhood, county or areas of special interest. Additional factors affecting location are school districts, high or low traffic areas, highway accessibility, the walking score for places of worship, shopping, as well as businesses. Location is not something we can control.
The market is a factor of supply and demand with contributing variables. The economy, interest rates, mortgage availability, competition and the public’s perception drives the market.
It could be a seller’s market or a buyer’s market. This is another measure that cannot be controlled by you, the listing or buyer’s agent.
The pricing of the home must reflect the current nature of the market. Many sellers use emotional attachment and their personal memories for pricing consideration when this does not play a factor in the pricing at all.
A good exercise is to look at your competition to get a ballpark of what homes are selling for.
Terms Can Be Attractive
It is best to not limit yourself to specific financing or terms that may eliminate a good pool of potential buyers. The better the terms you are willing to accept the more valuable your property becomes. There are many options to facilitate and close a successful sale, be willing to negotiate and take advantage of the options available to you.
I took over a listing right after the market crash with a seller who lost a great buyer due to both the buyer and seller not willing to negotiate. The home was listed at for 1.2 million and the buyer gave a 1 time offer of a million even. He informed the seller he was serious about the offer being take it or leave it.
The seller figured everyone negotiates and wanted closer to list price so he countered. The buyer walked even when the seller came back and stated he would take the original offer after submitting the counter.
It did not make a difference to the buyer, he was honest about his intentions and moved on. I took over the listing during the downturn and the market adjusted value of the home was at $700,000.
From the time I listed it until the time we closed with a new buyer the seller dwelled on what he could of had if he just took the original offer from the previous listing. It is better to be open to negotiations but understand that the opposite party may not and has the ability to walk if their offer is not accepted.
Failure to understand market conditions and strategic pricing could cost you thousands of dollars or cause your home to not sell. Setting the proper price from the beginning is very important. If you list it too high your home could sit for months without any activity causing you to adjust the price and miss the opportunity for a faster sale. This could make an impression to buyers on the market that there is something wrong with your home or it is a turn off.
Buyers in the market are updated on new listings via email and other home searches they are subscribed to. If they see your home listed higher than competitive homes they will elect to not see it. They will have an immediate impression of “over priced”. Many agents that tell you what you want to hear on price to get the listing is NOT in your best interest. You will walk away with a less than pleasant experience.
If you price your home too low, you can have a quick sale but you could be giving away money. Here are a few pricing guidelines to go by:
- What you bought your home for does not affect the value
- The amount of money you need or want does not affect the value
- What you think it should be worth does not affect the value
Your property value is determined by the market and what any reasonable buyer would be willing to pay for it. This is based upon a comparative market study of your home.
The Benefits of Proper Pricing
Faster Sale: The better the price positioning the quicker the sale and you will save on mortgage payments, real estate taxes, insurance and other monthly, quarterly or yearly costs.
Less Inconvenience: Selling your home takes preparation, time and energy. You will need to keep the home clean, make arrangements for children and or pets, keep the home available for showings, and possible alter your daily lifestyle.
Increased Salesperson Response: When a properly priced home comes onto the market, agents will contact potential buyers that may have interest in your home to beat other agents to the punch to set up showings for as soon as possible.
Exposure to More Prospects: Pricing your home at market value will make your home more available to people who can afford it.
Better Response to Advertising: It is easier to make an appointment with a buyer if the price of the home is not a deterrent. Thanks to the internet, buyers are more savvy with their home search. They have tools available to them to help them determine how competitive your home is to others they may have interest in. Every buyer wants a deal and every seller wants the highest price they can get, it is about bringing these two mindsets together. If your home is priced well above competitive homes the buyer will know it.
Higher Offers: If the home is priced well, the buyers will be more inclined to make a reasonable offer in fear they could lose out on the home.
More Money to Sellers: Pricing a property correctly means less carrying costs to you and a higher sales price in less time.
Drawbacks of Overpricing
Reduces Activity: If a home is overpriced agents will let their buyers know and often times will not show it.
Lower Advertising Response: Buyers will be more excited to look at other homes with better value. Remember they have access to the Internet and can do research on their own
Loss of Interested Buyers: If a buyer can get a similar home for a lower price then why would they want to even look at yours. Do not eliminate your home for them!
Attracts the Wrong Prospects: If your home is priced where other homes in that price range have more to offer the impression is left with the buyer that they can get more for their money in another home.
Don’t Help the Competition: If your home is higher than your competition it makes their homes look like a deal.
Eliminates Offers: If a reasonable offer is lower than the asking price it could insult you as the seller, thus giving hesitancy to the buyer to even make the offer.
Cause Appraisal Problems: Appraisers are held to strict standards and regulations when determining the appraisal of a home. If it does not appraise it limits your options with buyers and many times if you do not lower it to the appraised value they will be unable to underwrite the mortgage and will be forced to walk away.
Lower Net Proceeds: Most of the time the overpriced property will sell for less. This will have wasted much of your time and cost you more in carrying costs since it was not priced right to begin with.
180 Point Marketing Plan
Every home requires a marketing plan for maximum exposure in the Gainesville FL real estate market. Some of the ways we do this by working together in the following ways:
- Strategic Pricing
- Online Presence
- 180 Point Marketing Plan
- Property Availability
- Oversized Listing Photos
Get Your Home Sold!
Find out what is in our marketing plan to sell your home!
Whether You are Buying or Selling...
Finding the Community in Alachua County that fits your lifestyle is just as important as the home you purchase. Whether you want to live in Cross Creek, Gainesville, Hawthorne, Micanopy, Archer, Alachua we are here to answer your questions and assist you with making the decision on your investment. We are real people helping our neighbors just like you. We live and work in the Alachua County area. You can feel confident that we will market your property with the latest technology, internet exposure and marketing package to get your home sold.
ANSON PROPERTIES LLC IS A LICENSED REAL ESTATE CORPORATION WITH LICENSED REAL ESTATE BROKER STEPHANIE ANSON 15912 S CR 325 HAWTHORNE FL 32640 PHONE 352.535.0620 THIS WEBSITE IS PROVIDED ON AN "AS IS" BASIS, AND REALBIRD, GACAR, GAINESVILLE MLS, INNOVIA MLS, GACAR AFFILIATES, GAINESVILLE MLS AFFILIATES, INNOVIA MLS AFFILIATES, REALBIRD AFFILIATES AND/OR REALBIRD LICENSORS, GACAR LICENSORS, GAINESVILLE MLS LICENSORS, INNOVIA MLS LICENSORS, DISCLAIM ANY AND ALL WARRANTIES OR REPRESENTATIONS, EXPRESS OR IMPLIED, TO THE FULLEST EXTENT ALLOWED BY LAW, INCLUDING BUT NOT LIMITED TO IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. REALBIRD, GACAR, GAINESVILLE MLS, INNOVIA MLS, GACAR AFFILIATES, GAINESVILLE MLS AFFILIATES, INNOVIA MLS AFFILIATES, REALBIRD AFFILIATES AND/OR REALBIRD LICENSORS, GACAR LICENSORS, GAINESVILLE MLS LICENSORS, INNOVIA MLS LICENSORS, FURTHER DISCLAIM ANY AND ALL RESPONSIBILITY AND LIABILITY FOR (I) ERRORS, MISTAKES, OR INACCURACIES OF OUR CONTENT, (II) PERSONAL INJURY OR PROPERTY DAMAGE, OF ANY NATURE WHATSOEVER, RESULTING FROM YOUR ACCESS TO AND USE OF OUR WEBSITE, (III) ANY UNAUTHORIZED ACCESS TO OR USE OF OUR SECURE SERVERS AND/OR ANY AND ALL PERSONAL INFORMATION AND/OR FINANCIAL INFORMATION STORED THEREIN, (IV) ANY INTERRUPTION OR CESSATION OF TRANSMISSION TO OR FROM OURWEBSITE, (IV) ANY BUGS, VIRUSES, TROJAN HORSES, OR THE LIKE WHICH MAY BE TRANSMITTED TO OR THROUGH OUR WEBSITE BY ANY THIRD PARTY. REALBIRD, GACAR, GAINESVILLE MLS, INNOVIA MLS, GACAR AFFILIATES, GAINESVILLE MLS AFFILIATES, INNOVIA MLS AFFILIATES, REALBIRD AFFILIATES AND/OR REALBIRD LICENSORS, GACAR LICENSORS, GAINESVILLE MLS LICENSORS, INNOVIA MLS LICENSORS, SHALL IN NO EVENT BE LIABLE FOR ANY DIRECT, INDIRECT, CONSEQUENTIAL, SPECIAL, PUNITIVE, OR OTHER DAMAGES OF ANY NATURE WHATSOEVER, RESULTING FROM THE USE OF, OR INABILITY TO USE, OUR CONTENT AND/OR THE WEBSITE AND/OR ANY PRODUCTS OR SERVICES PROVIDED THROUGH THE WEBSITE, WHETHER BASED IN TORT, CONTRACT, OR NEGLIGENCE, EVEN IF WE HAVE BEEN ADVISED OF SUCH ACTUAL OR POTENTIAL DAMAGES. YOUR ONLY REMEDY SHALL BE TO CEASE ANY FURTHER USE OF OUR CONTENT OR WEBSITE