Square Footage Alone Is NOT How I Came Up With Your Suggested List Price
There are a lot of different factors that go into figuring a list price not just one! Trust your agent, they've seen most of the houses that are comparable and know what sells and what doesn't
Square Footage Alone Is NOT How I Came Up With Your Suggested List Price
If I have heard it once, I’ve heard it a million times....
“If the average price per square foot is $X.00, why do you think my house is only worth $X.00?”
There many reasons that can affect the value of your home. Yes, we can figure the average price per square foot for your neighborhood, but that does not mean your home will get it.
As a matter of fact, your home may get lower than the average, -- OR -- it may set a new record!
Lets take a quick look at a few things that may not matter, and focus on the things that will!
Things that matter to you, but may not factor too much into your home’s value:
- What you paid for your home. Unless of course, you just bought it. That is a whole different blog topic - Flipping Houses. And just for the record... if it were that easy, EVERYONE would do it! I have a broker friend who bought a house to flip in Houston that has been on the market for well over a year. It is NOT that easy!
- How much money you have spent on the home since purchasing it. Some improvements do help the value of the home. For example, adding granite counter tops to the kitchen should help. Especially if your are in a neighborhood where the buyer expects to get granite counter tops. However, if your home needed a new septic system and you installed one. You don’t get to add the cost of the new septic system to what you paid for the property. Why? Because buyers expect the septic to work at fair market value. A new septic tank is a great incentive and it may be what causes a buyer to pick your home over another similar home. Besides, did not you get the house for less that market value because of everything it needed? Okay, you have done those things. NOW you are at market value. Not necessarily OVER it!
- Verbal declarations of neighbors. What they SAY they sold or bought their house for. If they didn’t show you the closing statement, it does not count. If I am going to use it in my market analysis, I need to see the closing statement as well.
A few things to consider:
Number of rooms count and so does square footage. But NO double dipping! You can’t count both.
- If your home doesn’t have a garage and the house you are comparing it to does, then adjusting for the garage only make sense.
- Brick homes are more valuable than frame homes.
- Kitchens and Main Bathrooms are BIG sellers. How do yours compare?
- Do the homes have the same amenities?
- How much land does your home have compared to the other homes that have sold?
- Location, Location, LOCATION!
- What kind of floors do you have, counter tops, and appliances?
- Stairs vs No stairs. And this includes exterior stairs, too. Such as homes that require you to go upstairs to enter the home.
- Traditional style vs Non-Traditional. Non-Traditional typically lessens your buyer pool.
- Can the buyer see themselves moving right in without having to do a thing? It makes a MAJOR difference on your Days on Market (DOM), which ultimately affects your price!
We all think our home is better than the comparables. If you disagree with the Comparative Market Analysis (CMA) that your agent has provided for you, then by all means -- have your home appraised for Fair Market Value. The good news is, if I am your listing agent, I am more than happy to reimburse you for the cost of that appraisal when we close.
I want you to be comfortable with what you are listing your home for. I will not get my feelings hurt if you have it appraised. I am not a licensed appraiser and what I gave you was simply an opinion of price based on comparative sales in the area. Besides, if your right, and the house sells for that higher value, I get paid more! It’s a Win-Win.
Why don’t I pay for the appraisal?
- I know what I feel the home is worth and am comfortable listing it at that price.
- Some homes do not sell for what they are worth. Just because it is worth it, doesn’t mean you will get it. In reality, BUYERS determine your home’s worth, not me, and not the appraiser. If you decide that you would rather keep the home than sell it at what a buyer is willing to pay, I’m stuck with an appraisal that will do me no good.
- If the home going on the market does not appraise for what the seller wants it to appraise for, the seller may get angry and decide not to list. They may even look for an agent that will list overvalued homes. Either way, I am stuck with an appraisal for a home I can not sell.
Okay! So now you know that just because your home is larger, it is not necessairly worth x dollars more than the other home in your neighborhood that just sold. Now you know that it is not just about the size of the house. You know that it is about the location, size of land, amenities, condition, kitchen and main bath, garages, and probably a LOT of other things I failed to mention.
Hopefully I have mentioned enough of what it IS about to help you understand that is is not just about the size or number of bedrooms.
But, if you’re still unsure, that's okay! Take my advice, and have it appraised! :)
Square Footage Alone Is NOT How I Came Up With Your Suggested List Price
This has been brought to you by YOUR Huntsville / Lake Livingston Area real estate professional. Before you buy or sell, call Joni Staples at (936) 650-9017. I look forward to earning your business and exceeding your expectations. Broker Associate with Prudential Anderson Properties. Mike Huff, Broker.
Copyright (C) Joni Staples (936) 650-9017 www.HuntsvilleHomeSource.com
Licensed in the state of Texas (0518539)
Joni@JoniStaples.com
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