CURRENT MARKET ANALYSIS
Accurately pricing your home is one of the key principles to creating a successful real estate sale. Hiring a local expert who actively sells in the area and is familiar with the surrounding neighborhoods and homes is even more important. When completing a current market analysis (CMA) your Realtor will provide you with homes that have recently sold (usually within the last 6-12 months). Based on these findings and the terms of sale of other homes, which aren’t always public knowledge, a price recommendation is made.
DETERMINING VALUE OF YOUR HOME
There are many ways of arriving at a price opinion. Here are the top five features that are considered when making a price recommendation for your home:
The total square footage of your home plays a heavy role in what we can sell for. But it certainly isn’t the golden ticket. Square footage that is above grade has more value than a finished or unfinished basement. Using an average price per square foot as a general indicator is good. However, that should not be the only factor scrutinized when evaluating the price of your home.
Recently remodeled or upgraded homes are valued more. With that said, older homes that are meticulously cared for and/or have original features that are fully intact, can be equivalent or greater in value. In Tacoma, we have many homes and neighborhoods that have historic significance. Evaluating these unique homes requires knowledge of homes that may have sold years ago. Yet another reason why hiring a local Realtor is so critical.
Amenities such as proximity to local grocery stores, transit, parks and overall walkability play a considerable role in the value of your home. The convenience of these daily necessities and recreational enjoyments enhance the lifestyle of the occupant. Although there is not an exact dollar amount associated with any one feature or local convenience, they boost the value of your home significantly. Upcoming developments, such as new transportation, multifamily improvements or local historic preservation of buildings may not have an immediate impact on value. However, theses factors should be considered in the overall analysis.
Did you know that appraisers not only take photos of your home, but also consider the condition of your direct neighbors? Having a dilapidated structure directly next door, may negatively impact the value of your home. Unfortunately these things don’t change overnight. But sharing information you have about your neighbors with your Agent will help them be able to answer questions that buyers, their agents and the appraiser may have.
BUYERS MARKET VS SELLERS MARKET
The Tacoma Real Estate Market has, for the last 5 years, been a very strong sellers market; being labeled as the hottest real estate market in the nation in 2018 and 2020. There are more home buyers than there are homes for sale; however, the assumption that because it is a strong sellers market “your home will sell itself” is false. There are nuances to selling in a sellers market that require increased attention to detail and specific negotiating tactics. Keep in mind that even if a buyer is willing to pay significantly more than what we list your home for, it does not mean that the house will appraise.
PREPARATION AND PRESENTATION
Every home has a story. Through proper preparation, presentation and representation, your home not only tells its story but buyers are able to see themselves begin to tell their story in your home. The price will fluctuate slightly depending on overall preparation and presentation of your home. Refer to Preparing your home for sale for guiding principles on how best to do this. I, of course, will assist with this process.
Your home is one of your largest financial assets. Every homeowner in Tacoma and Pierce County is deserving of a Realtor who understands the constantly changing real estate market. Furthermore, a Realtor with a complete understanding of the unique selling features of your home and neighborhood. Pricing your home correctly (not over pricing or under pricing) is essential to getting the most value out of your home. This cannot be done without the consideration of all of the things described above.