How do you determine what your house is worth? If you’re considering selling and aren’t sure how to price it, then reading this will help.
I have been personally buying and selling homes in San Diego since 1985 and I’m a full-time realtor for the past 10 years, so I do know a thing or two about pricing homes.
Here are a few things that you are going to want to consider: the Size, the Condition, and the Location. All of these have a big effect on the price.
On the SIZE, you can’t compare a home that is 2,000 sq. ft. to a home that is 4,000 sq ft. That would be comparing a Maserati to a Hyundai, they just don’t match you.
You need to look objectively at it. The same way an appraiser would. In most cases, if there is enough inventory to determine pricing, an appraiser likes to get it within 200 to 400 sqft variance for comparable. If there isn’t enough inventory, they will make adjustments in their evaluation based on the difference in size.
Now, let’s talk about the CONDITION. Again, think about this in relation to a car, you can’t compare a beat-up old jalopy to a brand new shiny car, right? well, a home is kind of the same. When pricing, you have to look at things like how upgraded your home is, think HGTV, because that’s what buyers are thinking. How modern it is, does it need updating? what is the landscaping like?
Lastly, the LOCATION. Are you in a great location? Close to freeways and shopping? How does your area compare to others? Are there any nuisances? Like power polls? Heavy traffic? 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 you’ve got to look at all the variables because overpricing your home can cost you a lot of money. Yet, you also don’t want to underprice it. So keep Size, Condition, and Location in mind when you are pricing your home.
Feel free to reach out to me for advice. Stay healthy and safe.