I get a lot of email from people that say “I found this property for sale…what do you think of the asking price?” Well, since I spend my day looking at everything on the market – both active, pending and sold – I have a sense of the price range for certain properties, and where things should fall. That being said, it’s nearly impossible to put an exact price on a property without seeing it first. So with that, here’s what I use to determine market value of a property for sale:
1. Standard Specs – bedrooms & bathrooms
2. Square Footage
3. Lot Square Footage (if the property is not a condo)
4. Type of Property (comparing a bungalow to a colonial is a no-no to me)
5. Comparable sales as a benchmark using the specs above
8. Intangibles/Extras (ex. extra parking spot, balcony, gold painted walls – kidding)
There’s a lot that goes into figuring out pricing of a property. There’s no rule of thumb that says your initial offer must be 5-10% under list or 100% of list – each property is different, so the approach will be determined by price and place. I do a complete market analysis on each property before we submit an offer, just to make sure we’re accurate.
If you’re interested in finding out what your home is worth, please submit an information form!