February 21st, 2012 5:42 PM by Jonathan Hall
When I meet with perspective home sellers, I always look at what has sold in their neighborhood. Those are going to have the most impact on your home’s house value. Most of time, homes in the neighborhood were built in the same time, have about the same square footage,similar lot size,design and appeal. If you have the most amazing at the house,larger than all other homes, on a premium lot, your home will of course reflect a premium value. I understand that you do not want to give your house away, but you do not want to price yourself out of the market so your home won’t sell so you won’t accomplish your goals. If all the other homes in the neighborhood are 3000 square feet which are selling for $500,000 ($166 a square foot), and your home is 4000 square feet, it doesn’t mean you can get $664,000. Any additional square footage over the neighborhood average size gets calculated a lower rate. With most improvements,you might not the full amount back that you spent on doing the things.The marketing that I do reflects how the home is so much different than the rest of them in the neighborhood, in order to find the buyer who is willing to appreciate the uniqueness and or updates of your home.Buyers and their agents will certainly look over the sales in the neighborhood,if they are making an offer, to help them come up with a price for their offer to make sure they are not overpaying.As a homeowner,you do not like to see low priced sales in your neighborhood. However, that is what the market is saying the value of the homes are worth. Believe me, if the sellers could have gotten more money,they would have. When a bank sends out an appraiser to for the bank for buyers that need mortgages, they look at the sales in the neighborhood and make their adjustments for size,view,and their objective facts on the house and how the market is since the most recent sales. I usually put everyone that is looking to sell their house on a program so they can see what homes in their neighborhood are selling for.