How do you determine what your home is worth in this ever-changing, fast paced market of the Wasatch Front? With the Silicon Slopes quickly developing – Salt Lake and Utah County housing markets are exploding.
Even if you’re looking to buy a house in Salt Lake City area, how do you determine a fair price to offer?
When it comes time to selling your house in Utah, how do you determine the sales price? Do you look at Zillow and count on their Zestimate being correct? Do you go off what a neighbor sold for? Here are a few tips in helping you determine what your home is worth.
Video Transcript:
How do you determine what your home is worth? If you’re considering selling and you’re not sure how to price your house, or maybe you’re considering buying something and you want to know what you should offer on a home, then this video will help. Hi, I’m Melissa with Utah Homes by Melissa.
I’ve been selling real estate along the Wasatch Front for over 12 years and here are a few things that you need to consider when it comes to price on a house. Size, condition, location, marketing, and negotiating. All of these have a huge effect on the final price. Think about it. You can’t compare a home that is 2,000 square feet to a home that is 4,000 square feet. They just don’t compare. It’s like saying a Maserati and a Hyundai and comparing those. They just don’t match. They’re not comparable.
You need to make sure you’re comparing the size just like an appraiser would. In most cases, if there is enough inventory, an appraiser likes to go about anywhere from 10 to 15% difference both higher and lower when they use comparables in determining a price. If there isn’t enough inventory, then they will make adjustments in their evaluation of what the home is worth based upon the difference in size.
Now, let’s think about condition. Again, think about this in relation to a car. You can’t compare a beat up old hooptie to a brand new shiny car, right? Well, a home is the same. When pricing you have to look at things like how upgraded is your home? How modern is it? What condition is it inside? Did your dog chew up the doorframe in a room? I’ve had that happen. Are you in a great location that’s highly desirable like the Avenues or Sugar House? How does your home compare to others? Are there any nuisances like heavy traffic or anything else that could be considered undesirable for a buyer?
To learn more about how important marketing is, watch the video series that I’m putting out on marketing your home. Remember, when pricing it’s natural to feel like your home is worth more than everyone else’s because you have an emotional attachment to it. But you’ve gotta look at all the variables because underpricing your home will cause you to lose money and still even if you overprice your home it will cause you to lose money. If you have questions, feel free to reach out to Utah Homes by Melissa. And as always, make it a great home buying and selling day.
