Sellers may think that sale price in the immediate vicinity is the one and only factor when looking at other comparable properties trying to determine a price tag for their own homes. However, it’s actually a lot more complicated than just looking at the sale price or checking out pricing estimates on various popular real estate websites. Here are five things that impact comparable properties that all sellers should be aware of.
1. Location: Being close proximity to amenities and schools while having more or less safety and/or higher, lower noise levels can make a great impact on sale price of homes that are even within the same neighborhood. As the law of demand & supply goes, homes in more attractive parts of the neighborhood will most likely sell for a higher price whereas all other homes getting sold equal.
2. List Price vs. Net Sale Price: The asking price that sellers get greatly depends on market conditions. When a home is priced, it is crucial to focus more on net sales prices. The listing price doesn’t accurately reflect what a home will sell for so it shouldn't be depended on.
3. Renovations: Newly renovated homes generally sell for more than homes that haven’t been renovated for a while. If a home is recently renovated—especially its kitchen and/or baths— it should be priced accordingly.
4. New Construction Communities: Due to low prices for lots and changing costs in home building materials, new homes may be cheaper to buy as they may cost less per square foot than existing homes. If there’s a significant number of new construction communities nearby, this may affect the price of homes that are going on the market.
5. Lots: Each lot hasn't been created equally as they come in various shapes and sizes. Even if the lot size is the same, a lot that has more potential to build on will get a better price than a rocky lot that needs a lot of work.
Keller Williams Capital Properties - Fairfax