And the Only Thing That Does Affect Your Home’s Price
So, it’s time to determine the asking price for your home, and you’ve got a nice number in your head. You’ve considered several factors when coming up with this particular figure, and you’re determined not to back down. The problem is, you probably used several different factors that have no actual bearing on home values when you came up with your price. So, what are these factors, and why don’t they affect the asking price?
What You Paid
What you paid for the home when you bought it really doesn't matter. You can’t apply the laws of inflation, subtract money amounts for years lived in it, or even tack on extra for the new flooring, swimming pool, and kitchen countertops you put in, because what you paid for the home has no bearing on what it’s worth now.
How Much You Need
If you’ve determined you need to net a certain dollar amount from the sale of your home, you may have a particular price already firmly in your head. Unfortunately, it just doesn’t work that way. Walking away with a profit from the sale is nice, but you can’t count on this happening.
What You Want
Of course, you want to see your house fetch a certain price. You need to know the investment you made is worth the same or more after several years. The problem is the market doesn’t really pay attention to what you want, which means you need to pay attention to the market.
What an Agent Says
Listening to your agent’s advice is wise; after all, they’re the experts. Still, you must prepare yourself for the possibility that your agent could get it wrong from time to time. We can only do the best with the information we have, but that’s not always enough.
What Does Determine Price?
So, what does determine the price of your home? Neighborhood, desirability, trends, and inventory all play a role, but the only thing that truly determines the price is what a buyer will pay.
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