What is driving the large price increases on homes these days? If you read the comments on various posts on online news outlets or social media sites, public opinion sways to REALTORS® gouging prices and greedy sellers.
When in fact, it is neither. REALTORS® don’t have the power to set market prices, and a greedy seller will be rewarded with no activity on their home i.e., no buyer interest and an accumulation of days on the market.
How Is A Home’s Value Determined?
When a REALTOR® is called in to give a price opinion on a home (commonly known as a Comparative Market Analysis), they will review similar homes that have sold in a 3-6 month period to determine a base price. From that point, the home’s amenities will be taken into consideration. A sampling of elements that are relevant to determination of value would be:
- Is the location of the home on a quiet neighborhood street or a busy road?
- Is there an in-ground pool at the property?
- Are the kitchens and bathrooms updated to modern standards?
- What’s the condition of the roof and structure?
- Is the property located in a flood zone?
- Has the home been maintained by the seller or is there lots of deferred maintenance issues?