Pricing your home correctly is one of the biggest keys to attracting a robust pool of potential buyers, but the pricing process feels like one big mystery for many sellers. The good news is that it definitely doesn't have to be! While the pricing process can be complex, every good real estate agent follows a similar process to determine a home's value. Understanding what does – and what doesn't – factor into a home valuation will help you get a better grip on how much to expect when you sell. Our REALTORS® are here to help remove the mystery from the home valuation process.
It All Starts with a CMA
When determining the value of your home, your agent will start with a comparative market analysis (CMA) to compare your home with other, similar properties in your area. A CMA looks at the comparable homes that are currently on sale, those that have already sold recently, and homes that were listed but didn't sell. With a CMA in hand, you'll have a much deeper understanding of how your home fits within your local real estate market, whether you're competing with other Mansfield homes for sale or listing in any other community.
How Home Size and Layout Factor into Price
Square footage is one useful factor in picking a price, but it's more of a jumping-off point than a determining factor. That's because how the square footage is distributed is also a key factor. The number of bedrooms and bathrooms and garage space and other extra rooms, helps to provide a complete picture of how much a home is worth. In addition to helping determine your home's value, price per square foot is also an easy way to compare your home with other properties on the market.
How Hot Is Your Local Real Estate Market?
As always, the location of your home is an important factor in price. That includes both where the home is located within the community and the strength of the real estate market where you're selling. If inventory is low and demand is high in your market, you can often expect to receive a higher price for the home. If it's a slower market, however, then you may need to lower your price a bit to make your home stand out among other similar properties.
Don't Expect Full ROI on Renovations
While it would be nice to recoup every dollar you spent on renovations and upgrades to the home, it's best to temper expectations on that front. Some renovations provide positive ROI, some are neutral, and some will not return full value when you sell. The good news is that those renovations can still help your home stand out to potential buyers, even if you don't make back every dollar spent on renovations.
How Flexible Can You Be?
Your flexibility with your selling timeline and other key factors will also have an impact on the price that you can expect to receive. If completing a sale quickly is your number one priority, you may have to sacrifice on price to make a quick sale. A more open-ended timeline gives you more time to attract a buyer at your preferred price and more flexibility to accommodate the needs of the buyer who makes the best offer.
Searching for the right team to help you buy or sell your next home? We can help. Contact us to buy and sell homes throughout the Mansfield, OH area.