Putting your home on the market requires a great deal of preparation. One thing you will want to do in the early planning stages is to determine the value of your home. Knowing your home’s value is important as it gives you the information you need to guide the sales process. This information also gives you a better understanding of how much you can expect to earn from the sale. You’ll also want to learn about the factors that go into determining your home’s worth so that you can address any determinantal issues prior to listing your property.
Factors that Influence Home Value
One of the biggest influences on home value is actually how much similar homes in your neighborhood are selling for. Real estate professionals use these comparables to estimate the value of your home. A real estate agent in Southeast Michigan is your best bet when it comes to setting a sales price for your property. They understand what buyers in your area are looking for, and they have a sense of the competition.
In addition to factoring in the sales price of neighboring homes, your real estate agent will consider your home’s size, age, and any renovations you have made. Price per square foot is one way home values can be calculated. What really matters is how much of your space is usable. Garages, attics, and unfinished basements do not typically count toward usable square footage. Therefore, you may not be able to count on them as adding tremendous value.
Wear and tear can impact the asking price of a home. For this specific reason, it’s usually safe to say that newer homes will generally be valued more favorably than comparable older homes. You should know that buyers will usually want to add some type of contingency into the contract to prevent loss due to substantial repair costs once they’ve purchased your home. Finally, renovations can benefit your home’s value. Your real estate professional can advise you on cost versus benefit when it comes to making upgrades for the sake of selling.
Why You Should Know Your Home’s Value
Perhaps one of the most important reasons to know your home’s value is so that you’ll have the opportunity to increase that value prior to listing it. There are steps you can take that will make your home more appealing, but you will want to be strategic in your decision-making process. Knowing comparable home values and the factors that influence them can inform your renovation decisions.
Having a thorough understanding of your home’s value is also crucial to your financial planning. The ability to anticipate potential profits from the sale lets you know how much you’ll have to work with when it’s time to buy a new home. The key to getting the best price for your property is working with a local experienced real estate agent. It’s helpful to have a professional there to guide you through each and every step of the process.