How a Comox Valley REALTOR® Prices Your Home

You’ve loved your home but are ready to move on. How much should you list it for? A casual observer might believe a listing price is an arbitrary number. Realtors consider many factors when pricing, including market conditions, historical data, location and amenities. Overprice a property and it could linger, unsold, for months. Undervalue it, and you’re leaving money on the table. While getting a home appraisal can give you an idea of your property’s worth, pricing a home is part science and part art.

When asked to price a property, there are many aspects involved and lots of fine-tuning.

Some considerations include:

Current local market conditions

Pricing a home should include looking at the current market conditions and trends in your area. How many properties with similar features are up for sale? How fast are they selling? Knowing these things can help determine how a property should be priced. Comparable current and sold listings are an invaluable source of information to look at when pricing. This takes into account the ability of active buyers and their buying power. Sold property prices are often relayed to any buyer or seller by their REALTOR®. Is it a buyer’s or seller’s market? When there’s low inventory in a neighbourhood, this can create a seller’s market with more competitive listing prices. If there are a lot of homes for sale, it may require lower asking prices and indicate it’s more of a buyer’s market.

Location

Sought-after neighbourhoods near well-respected schools and other amenities will typically demand a higher price tag. Remember: even homes on the same street can differ in price. If one side of the street backs onto a body of water, for example, those homes could be priced higher. Similarly, a busy street or lots of noise nearby may suggest a lower asking price.

Size and layout

A home’s layout can also factor into its pricing. Many families look for three or more bedrooms on one level. The square footage of a home and land size also influences the value of a property. Depending on the area and the buyer, aspects like privacy or usable land play a role.

Age and condition of the house

How old a property is, and whether it has or needs major updates, also factor into pricing. These can include windows, roof, kitchen, bathrooms, and mechanical systems. When the major components of a home have been updated or replaced, many buyers see that as a benefit. It is part of the long-term investment they will not need to spend money on. DIY projects gone wrong can be detrimental in obtaining top dollar. Work that is not done professionally and is substandard will decrease your home’s appeal. This, therefore, will also decrease the price.

Bonus spaces

A home with an in-law suite or additional income potential can be important as it gives the buyer flexibility with their financing and buying capability. Within urban communities, it may be hard for a buyer who wants a detached workshop or a studio. This is considered special and not easy to find, so it must be taken into consideration when pricing.

Seller’s motivation

Comox REALTORS® also take a seller’s motivation into account when pricing a property. If a seller has an accepted offer on another property, or they’re being transferred out of town, they may ask a compelling listing price to attract more buyers.

What is the MLS® Home Price Index and how does
it work?

REALTORS® have a powerful tool at their disposal. This is the MLS® Home Price Index (MLS® HPI). It provides a more precise picture of home price trends by gauging prices for the market as a whole. It also provides prices for specific housing categories. This information allows them to do a comparable market analysis. They learn what other similar homes have recently sold for and gives solid indicators on how to price your property. Because this data can change from month to month, it’s important to use an accurate tool that tracks prices to get the latest information. Ultimately, the pricing of a home is the seller’s decision. Their REALTOR® helps with that decision by employing their expertise and knowledge of the market. One goal is to price the property to attract serious buyers. Another goal is to prevent an extended period of time on the market that may ultimately come at a cost. Working with a Comox Valley REALTOR® to price your home gives you peace of mind that you’re setting yourself up for success with the advice and expertise of a professional.