The value of your home (or any home, really) is determined by what buyers in the market are actually willing to pay for it. It really doesn’t matter much what you, the seller, think your home is worth. It depends almost entirely on market value. Market Value is the price a home would sell for on the open market under normal conditions or in even simpler terms what buyers are willing to pay. Sellers often either overestimate or underestimate the value of their home, and that’s why it’s so important for sellers to know what actually determines the market value of a home. There are 5 important factors that go into determining the value of your home in Westfield, Cranford, Clark, Scotch Plains, Fanwood and Mountainside Areas.
1. CMA/Comps
Probably the most important tool for determining the value of your home in Westfield, Cranford, Clark, Scotch Plains, Fanwood and Mountainside Areas is the comparative analysis (CMA or “comps”). We use a CMA to determine the fair market value of your home. We look at very similar {comparable) homes in the area that have recently sold. This will give you a fairly accurate idea of how to price your home.
The trick is finding recently sold homes in your neighborhood that are very similar to yours. Ideally with similar features, comparable square footage, similar condition and age, and so on. But that can be difficult in the area because no two homes are exactly alike. There is a wide variety of features and designs in the Westfield, Cranford, Clark, Scotch Plains, Fanwood and Mountainside Areas. Plus two homes may actually be very similar in almost every detail, but one may be closer to good schools, the train, or something else that makes it worth more.
A CMA is a very valuable pricing tool, but it takes some skill and experience to get it right. So be sure to contact us for help with a CMA. To learn more, just call 917-608-7277.
2. Location
You’ve heard it often enough. The value of your home in Westfield, Cranford, Clark, Scotch Plains, Fanwood and Mountainside Areas is influenced primarily by three factors: location, location, and location. That’s usually said a bit tongue in cheek, but there remains a lot of truth in it.
Your property’s proximity to everything from local amenities to local highways will all dramatically affect the value of your home. This will include the property’s proximity to a body of water, tourist destinations, city centers, and public transportation. In our area being close to town, parks, and schools will influence value. In addition, an area’s crime stats (i.e., the neighborhood’s safety record) may also influence the value of your home. Of course, the area’s housing market – and state of the market, in general – will affect the value of your home.”
When it comes to the pricing influence of location, then, the best course for most sellers is to rely on their agent’s expertise. For location will affect the value of your home differently in different markets.
3. Home and Yard Size
And then, of course, square footage and the size of the yard will play a large role in the value of your home in Westfield, Cranford, Clark, Scotch Plains, Fanwood and Mountainside Areas. Typically, a larger home is worth more, but there are exceptions.
The size of the home (and outdoor space) is an important factor in determining the value of your home. When pricing your home, we will want to assess both the size of the home including the number of bedrooms and baths plus the lot size. This is only part of the story….
4. Upgrades and Renovations
In determining the value of your home in Westfield, Cranford, Clark, Scotch Plains, Fanwood and Mountainside Areas, you’ll also need to factor in any upgrades or renovations. The number of updated items including kitchens, baths, quality of craftsmanship, and age of home systems all impact value. The same goes for the yard. Quality landscaping and renovated outdoor spaces add value. Generally, buyers will pay more for homes with upgrades but even smaller things like new light fixtures can increase value.
Assuming you didn’t over-improve the home, you should be able to include the majority of the upgrade expenses into your calculation of the home’s overall value. Of course, some renovations typically yield a greater ROI than others. Several of the most valuable home improvements include a kitchen or bathroom upgrade, an upscale garage door addition, and an outdoor deck or patio addition.
5. General Condition
Location, size, and upgrades aren’t the only considerations. The general condition of your home has to be factored in as well when you’re trying to determine the value of your home in Westfield, Cranford, Clark, Scotch Plains, Fanwood and Mountainside Areas.
Obviously, a run-down, dilapidated home won’t be worth as much as similar homes in the neighborhood that have been kept up. When calculating the value of your home, you have to consider the overall condition of the home. Properly maintained homes will hold their value longer.
Use Your Agent to Determine the Value of Your Home
For most sellers, especially those with little selling experience, the best course is to rely on the expertise of their local agent. We know the local market and exactly how to determine your home’s value in that market. So if you want to accurately determine the value of your home in Westfield, Cranford, Clark, Scotch Plains, Fanwood and Mountainside Areas and the price to sell, contact us today at 917-608-7277.