Determining the value of your home is related to many factors. While a house may have a perceived value, and for family homes, they often feel priceless, but when it comes to what a buyer would pay in any given market is influenced by a set of specific things.
A part of this is uncertain however, because you may well find yourself in a position where two or more buyers are bidding against each other. Aside from that, here are the things that do directly correlate. The figure will change as time passes and as more houses sell in your area, and as your particular home ages.
Additionally, the value of the house will be tied to comparable sales, often abbreviated to comps of other similar homes in the neighborhood. The ones who make a living determining these evaluations generally factor in similarities to form these comps. From the square footage and lot size, to the number of full or half baths. However, there are instances where this doesn’t translate. If your home occupies a unique lot, or if you have the only two-story house on a street of ranch style houses, determining what’s an appropriate comp won’t be so easy.
During the sales process, more than one appraisal will be conducted and the final estimation typically falls somewhere between the higher and lower end of those numbers. Whenever realtors and buyers and sellers disagree on a property’s value, often bringing in a third party can shed much needed light on the process.
Also the seller has final say in their openness to negotiate. If a property has been on the market for a while, a seller might be motivated to lower the price below what any appraisal had listed. In these cases, the seller may even lose money.
To avoid losing money on the sale of your house, always consider the climate in which you are wanting to sell. Consider trends, view the comps and be prepared to give yourself some wiggle room for when a buyer comes along and wants to negotiate. Additionally, working hand in hand with your realtor to ensure your house is staged and presented in the best possible light will be a great benefit too.