Your friends, neighbours, the media and just about everyone else, will give you their opinion on what your home is worth. But who is right? Here are some things to consider when determining a price and fair market value for your home.
The first thing a homeowner should consider when estimating the value of their home is the most recent direct comparables sold in the immediate neighbourhood, combined with other similar properties in the same price point in neighbouring areas that buyers could also consider.
Comparables help you understand what buyers are looking for and what other competition is out there. A good measure is if a buyer took your price to market — what other options would they find at your price point and can they find homes offering more value for the same price?
This leads directly into another point, that it is very difficult to make accurate comparisons unless you’re an active real estate professional who has physically walked through and inspected similar properties. This is something you should ask your agent when you interview them. Have you inspected similar properties recently and how do they compare?
Also make sure you identify the ideal buyer for your particular property. What does that mean?
You need to be able to describe their lifestyle, income, which stage of life they’re at, their need to live in this neighbourhood, right down to why they need YOUR house. It boils down to identifying real demand and their motivation to pay your price.
Stick to these tips and you can confidently stand behind your price.