What external factors affect the value of a home?

A common mistake that many owners make is to focus solely on their home when determining value. Yet in dynamic markets, many influencing factors are completely out of their control.

We’ve witnessed recent dramatic market change in which the economy, interest rates, and financial markets have affected home values.

The simple act of a neighbor reducing a price can lower street values. A subdivision of new construction can lure buyers away from existing homes and lower their value.

EXTERNAL
influences on value

• Interest rates

• New listing

• Area competition

• Local economy

• Builder offerings

• Neighbor’s price

What about internal influences on home value?

The classic determinants of value are the intrinsic characteristics of location, size and amenities. The cliché “the three most important factors of value are location, location, location” has basis in fact.

Again, many sellers cite their home’s amenities and conditions as a reason to overprice.

INTERNAL
influences on value

• Location

• Size

• Amenities

• Condition

The benefits of pricing your house to sell.

Remember your last move? How long was your home on the market? What was it like to keep your home ready for showings all the time?

Did you know that up to 60% of sales are generated by cooperating agents?
Overpricing will deter them showing it to their prospects. Proper pricing increases the response we get from the internet.

When a home is priced right, buyers get excited and make higher offers.

ADVANTAGES
of proper pricing

• Faster sale

• Less inconvenience

• Increased salesperson response

• More Internet response

• Better sign and ad response

• Avoids being “shopworn”

• Attracts higher offers

• Means MORE MONEY to sellers