In trying to evaluate your home for a listing price that could actually result in a sale, agents and owners should look at the following factors objectively and without emotion.
A buyer may react emotionally to an aspect of the home which is great but most buyers will then ask their agent to do a comparative market analysis to measure the fairness of the asking price. If a buyer is getting a loan to purchase the home, the home has to appraise according to strict guidelines. See here for what an appraiser looks at https://sf.freddiemac.com/content/_assets/resources/pdf/forms/70.pdf
Following are 14 Factors that help determine a home’s value.
- Age of home and design style – While newer homes are favored by some buyers due to the lack of maintenance requirements, there are many buyers who love the charm of an older home, especially those of the craftsman and Victorian style.
- Structural materials and systems. Even in an older home, one that has had updates to systems such as electrical, plumbing, heating, and replacements to roof and siding will be seen as more desirable and garner a higher price.
- Quality of Renovations and Added Amenities. Renovations that are properly permitted are most desirable. Beyond that, the quality and workmanship of renovations will garner a larger listing price. Added Amenities such as hot tub, water feature, etc will also add value.
- Floor plan. Is the floor plan functional for today’s consumer? Needs and tastes change so this can be a moving target.
- Number of bedrooms and bathrooms. Price should be reflective of these numbers and these days, a private master bath is a sought-after feature.
- Square footage. Not always the most important element if the home has a great floor plan and makes use of space well.
- Curb appeal. Very important for first impression.
- Lot square footage and design. Not only is the lot important but also what is done with the space. People want to spend more time outside and a backyard oasis where one can entertain and relax is a sought-after commodity.
- Storage. More important for some consumers than others but organized storage is generally a plus.
- Garage. In some places, the number of garage spaces can make a huge difference in selling time and price. In Bozeman, 3 garage stalls are very desirable so that people can store their toys on site.
- View. Views can increase the value of property especially if they are unobstructed and protected.
- Location. Everything factors in here from walkability to shops, coffee, restaurants, ambient noise, convenience to freeways, airports, perceived demand for the neighborhood.
- Neighborhood. What does the rest of the neighborhood look like? It is most desirable to have like kind or better properties than the subject home in the neighborhood
- Comps and the current real estate market. What have other homes sold for in the past 90 days? And then what is the momentum of the current market?
If you are curious how your home would be valued, please reach out and let’s schedule a free property analysis. Montana is a nondisclosure state so only a licensed realtor or appraiser has access to real sold data which you need for an accurate valuation. For up-to-date information on the Bozeman market, read my blog posts at https://movemetomontana.com/.