Understanding How Homes Are Priced

By: Jarrod Ridnour, Broker Associate

Whether you plan on putting your home on the market someday soon, or you’re just interested in how much your property is worth from an investment perspective, it makes sense to know how homes are priced.

When a home goes on the market, there is an overwhelmingly high probability that it will sell for somewhere close to its market value.

So if a three-bedroom, detached home in a community sold for X dollars, then you can expect a similar home down the street to sell for roughly the same price.

That’s why real estate professionals look closely at recent home sales in the area in order to advise clients on the best listing price.

Are there other factors that determine the selling price? There are many. Home improvements, special features such as a large deck as well as the general attractiveness of your home, can all increase its value to potential buyers.

While some of these characteristics may help boost its selling price, others may simply help you sell your home more quickly.