If you are thinking of making a move in 2024, it’s important that you know what the current market conditions. There is still a shortage of homes for sale that has shifted the market, however, rising interest rates through 2023 have settled the market a bit.
Most houses that are being over-bid are properties that need minimal work and move-in ready. With any property that is being sold, there are 5 factors that influence the sales price of a home, Price, Condition, Location, Competition, and Market Conditions. the seller can only change 2 of these factors, Price and Condition. See below:
5 FACTORS THAT DETERMINE PROPERTY SALES PRICE
- Price – Appraisal guidelines are followed to get an accurate estimate of value. Over 90% of the homes sold will use financing, so it’s crucial that you evaluate based on an appraiser’s point of view. If the property doesn’t appraise, the purchaser may not get the loan, or will have to bring the difference of the appraisal shortage in cash.
- Condition – Condition of the property will determine a price range. Buyers will comparison shop, and compare the condition of one house to another. If you are the same price as another house that has an updated kitchen, chances are the buyer will choose to make an offer on the other house first.
- Location – This factor is hard to change, but is possible!! Most of the time, I will conduct a 2 part evaluation on location, sales within 1 mile, same city, same school district. It’s important to know the appraisal criteria for this item and know what is allowed/not allowed by appraisers.
- Competition – This factor the seller cannot change, but it’s important for you to understand the buyer point of view, and which properties you are in direct competition with. Property evaluation based on recent sales and active sales. This 2 part approach gives a more accurate estimate of value.
- Market Conditions – Buyers Market, Seller’s Market, local economy, entire US economy, as well as local job strength, are all factors that influence buyer’s decision to purchase, and seller’s ability to sell.
If you would like an accurate valuation, even better than a Zillow Zestimate, fill out the information below to get started.