Did you ever wonder how REALTORS® price your home? Do they just guess or is there some method to the price they suggest? Well, let’s explore how this process works. First, the REALTOR® will view your home in person looking for upgrades, additions and any other improvements. The REALTOR® has already done his or her research before they come by in person. We have access to assessor.org to see how the county has assessed your property, what you paid for it, the size and details of your property.
This is a public website that anyone can use. You can see aerial views of property lines and all details about the property. In addition, REALTORS® have access to the local MLS where your property is located. They can see the history of your property including past sales, photos and updates. This can help the REALTOR® determine the market value of your property. Next, they will do a comparative market analysis looking at active and sold listings similar to your property.
A REALTOR® determines your home’s value by more than just one factor. While they look at price per square foot to get a starting point, they consider other details such as location, lot size, upgrades and amenities. Layout is important too. If the rooms are smaller in size than other comparable properties, this can affect the price.
Market conditions are a huge factor when determining price. Are houses flying off the market? Is your economy booming? If there is a large amount of inventory, prices may be lower than during a sellers’ market or lack of inventory. If your town has pending layoffs or a lack of jobs, it may be more difficult to sell, and your REALTOR® will suggest a price that fits the area more appropriately.
If you’re selling your house, your goal is to find a buyer willing to pay your asking price. Pricing your home too high may cause it to sit on the market for way too long. Calculating the fair market value of your home can help you price your property right. Market value is what the buyer is willing to pay. If you need to upgrade your kitchen or baths, the buyer may see that as money they need to spend. This may lower your market value.
Most areas across the country are experiencing a Seller’s market or lack of inventory. Multiple offers, cash deals and quick closings are some of the terms I am sure you have heard on the news. The Morgantown area is no different. We currently have 157 single-family listings for sale in the area. The average days on the market are 123. This is a seller’s market. If you are considering listing and have somewhere to go, this may be the time to sell. Contact your REALTOR® today to get your market analysis.
I hope everyone is enjoying the summer, maybe taking some trips and seeing family and friends. Have a great week and remember to do good things!
Stephanie Lemley, 2021 MBOR President
