You Ask, We Answer: How Is the Price of My Home Determined?
If you’ve seen “For Sale” signs in your neighborhood and have been wondering what the market value of your home is, Calcagni Real Estate can help. We’re local to your Connecticut neighborhood, so we understand the current market conditions that influence a home’s listing price–and we can perform a complimentary Equity Analysis to determine the best price for your home right now. Read on to understand how the price of your Connecticut home is determined, and how Calcagni agents can get you the most up-to-date information on what your home is worth.
I keep hearing about the “market value” of a house. What is market value?
While the term “market value” may sound like a stock market term, when it comes to real estate, the market value of a home refers to what others will most likely be willing to pay to own it. This isn’t a fixed number, but rather, market value is determined by several key factors, the first being the amount for which similar homes in your area have recently sold.
What types of factors influence the market value of my home?
The market value of your home is not only determined by what similar homes in your area have recently sold for, but also by factors such as where your home is located. Is your home near a school? Is it on a cul-de-sac? Is it located in a historic district? Is there public transportation nearby, or is it in proximity to amenities like easy highway access, grocery stores, and a thriving downtown area? All of these location factors may play a role in the market value of your home, and your Calcagni Real Estate agent can help explain more in detail when you contact them.
In addition to the location of your home, your town’s taxes may also affect the market value of your home. Some buyers may shy away from a higher tax rate, but others may be in a financial position to pay higher taxes and may not mind doing so if your town has strong utility services.
Also, the economy may play a role in the market value of your home. If interest rates are higher for borrowers, they may take longer to purchase, they may opt for a less expensive house to make it work for their finances, or they may wait altogether to buy a house. Over time, a drop in demand for housing may cause other houses to be listed at lower prices to help them sell; this can also impact the market price of your Connecticut home.
How will my Calcagni Real Estate agent determine the listing price of my home?
When you meet with a Calcagni Real Estate agent to discuss listing your home for sale, they will perform a complimentary Equity Analysis. Here, they will pull “comps,” or properties comparable to yours that have sold recently (generally, homes that have closed within the past several months). Not only will these comps take into account houses that are similar to yours in layout and size (including the number of beds and bathrooms), but also in location. They’ll be houses that are as close to yours geographically as possible, and may also be similar in how updated they are compared to yours. Lastly, the homes your Calcagni Real Estate agent pulls for this report will be as close to yours in age as possible.
Once all of these factors are taken into consideration, your Calcagni Realtor will create an Equity Analysis of the 3-6 recently sold homes that most closely align with your own. This will help them determine the market value of your Connecticut home, and what they recommend as a listing price should you put it on the market in the near future. Just as the market changes, so will the recommended listing price of your home in response to it; this is why it’s important to work with a trusted Calcagni Real Estate agent. By doing so, you’ll have access to the most up-to-date information and can list your home at a price that makes the most sense for you and the potential buyers of your Connecticut home.
Want to understand more about current market conditions and the value of your home? Contact us today to speak to a Calcagni Real Estate agent. We’ll be happy to walk you through the latest information and what it all means for you!