While some may think that a listing price is an arbitrary number that gets decided quickly, many important factors are considered when pricing a home. Things like market conditions, location, comparables, amenities nearby, condition of the house, etc., all create a Comparative Market Analysis (CMA) that is used to price a home. REALTORS® will use these considerations to determine your best property list price. As we always tell our clients, the market decides home prices. What we mean by that is the real estate market determines what is overvalued and undervalued; if your property is overvalued, it will sit on the market for months without movement, unsold, and if your property is undervalued, you leave money on the table. It’s important to list your home at the right price so that the market favours your home amongst all the other listings on the market! Here are a few ways that REALTORS® determine property price!
Current market conditions
Your real estate agent will look at your neighbourhood’s current market conditions and trends. Looking at houses with similar features and how many days it has been on the market or how fast it sold helps to determine the list price – this is called Comparables. If you are listing your home in a seller’s market, meaning there are more buyers than inventory, you might be able to get more for your home. In contrast, if you are listing in a buyer’s market, meaning there is more inventory than buyers, you may have to list your home at a more competitive price.
Age and state of the house
The age of your home and whether or not it needs major TLC or upgrades like the roof, windows, flooring, kitchen appliances, HVAC, and other mechanical systems all factor into pricing. Edmonton REALTORS® will take note of the finishes of the house and any upgrades that the owners have done to their home. When the significant parts of a home have been updated or replaced, most buyers view that as a long-term investment because they likely won’t need to spend money on later.
Location and layout
Your property might be in a coveted location that is in high demand, but if you only have 2 bedrooms across your bungalow, your home will be priced differently than a similar-sized bungalow down the street that has 4 bedrooms, for example. That being said, location almost always plays a part in list price. There are certain neighbourhoods in Edmonton that always have a demand, meaning that properties in these neighbourhoods have the advantage of being priced a bit higher just based on the likability of the area. There is also a difference in suburban home prices and central home prices. All of these things are factored into the list price by Edmonton REALTORS®.
Realty Unleashed can help you sell your home!
If you are thinking about selling your home, we would love to help you. Realty Unleashed is an independent brokerage serving sellers and buyers in Edmonton and Calgary. We are committed to helping our clients every step of the way, making the buying or selling process as seamless and stress-free for you as possible. Our mission from day one has been to change what you expect from your REALTOR®. If you are looking for a team of Edmonton REALTORS® who will help you top to bottom, we would love to hear from you – please fill out the form below, and someone from our team will get back to you soon!