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Articles  >>  How To Determine Home Value When Selling A Home?

Factors in determing home value in the St. George Utah Real Estate

When it comes to determining home values in the St. George and Southern Utah real estate market, there are several factors to consider. This article should help you understand what factors determine home value.

Many factors go into determining home value in the Southern Utah Real Estate market. Probably the biggest factor is "location, location, location". Identical homes in different neighborhoods, or different areas of the city, can have a significant price difference just because of it's location. Other obvious factors include:

  • Age of the home (what year it was built)
  • What materials were used to build the home (granite or fermica, travertine or lenolium, etc)
  • why the home is being sold, and how long the property has been on the market. 
  • The condition of the home (and how well it was taken care of)
  • Yard (pool, no pool, child friendly, landscaping, trees, etc)
  • Comps (what other homes in the same neighborhood are selling for)
  • Size (sq. footage, number of bedrooms and bathrooms, living room, family room, etc.)

The square footage and number of bedrooms and bathrooms plays a large part. Typically, larger homes with more bedrooms and bathrooms increase the home value. There are several other features that help determine home value. Does the home have a magnificent view? Is it on a private lot or cul de sac, or close to public transportation? All of these can add to its value. School districts can greatly affect value, and the age and condition of the home are also factors.

Another factor in home value is the current number of comparable listings on the market. The fewer the listings, the more valuable your home, particularly if it’s in a desirable location or has amenities hard to find in your area. Supply and demand can make your home worth more, allowing you to set a higher price when you sell. Conversely, if there are many homes similar to yours on the market, that can lower the value, especially if there aren’t many buyers. With the economy in a recession, the housing market in St. George struggling, lenders tighting their loan requirements all add up to fewer buyers, truely creating a "buyers market". When there is strong demand for real estate, profits rise and competition stirs. With this increased competition and profit comes more home building and development. Unfortunately when excessive profits are available, a surplus of competition can create an oversupply of housing, and collapse the market. Something we’ve seen lately in the St. George Real Estate market.

There are many tools available to help you determine your home value. Obviously we can help you with that, we have a good understanding of the current market, and determining the factors that determine value here in St. George, Allow us to review comparable homes and estimate how your home sizes up to your competition. When comparing your home to similar ones, make sure you look at more than square footage and the number of rooms. Take into account features such as location, age, and the condition of the home. Also the size, and shape of the lot makes a difference difference.

When setting a market price for a piece of property, the cost of acquiring or constructing a similar property must be considered. If the asking price of a home is $500,000, but similar homes in the neighborhood sell for $450,000, chances are the home will not sell for the full asking price. The same is true if the cost of constructing a new home (along with lot lost) is less than the asking price of $500,000.


One final factor in determining your price is your time. If you are not in a hurry to sell, you can price your house higher because you have the luxury to wait for the right buyer. Just make sure you don’t price it too high – you don’t want to scare away prospective buyers. However, if you are in a time crunch, it may be better to price your home on the low end in order to sell quickly. Selling quickly may be more valuable than whatever additional money you would get from a starting at a higher price.

 

If you would like a free home evaluation, please contact us for more information.

 

 

 

 


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