Whether you are a buyer or a seller, the question of “what goes into a home’s asking price?” is a valid one. What are the factors that go into determining this number?
Factor #1: Current local housing market. Something that can change on a dime, the question of where the current local housing market is at will definitely affect a home’s asking price. How many other houses are up for sale? What’s the average shelf life of those homes? Also, is it a buyer or seller’s market? If there are more homes on the market than there are buyers or vice versa, this will affect whether a home can be priced up or down.
Factor #2: Location of the home. This can get pretty specific all the way down to the exact address and whether or not the home is on the left or right side of the street. Especially in Alaska where we have picturesque landscapes all around, the view a home provides can be a major factor that goes into the asking price. Also, some areas are simply more desirable than others. What are the amenities close by? School district? Distance to stores?
Factor #3: Competition houses up for sale. What are other houses selling for in the area? What are similar homes selling for? The market analysis of comparing competition plays a big role in figuring out a listing price.
Factor #4: Features of the home. Is there anything about the home that makes it unique or has upgrades? Everything from the square footage, whether it’s a one or two-story, the windows, driveway, pool, new construction vs. existing - the list could go on!
Factor #5: A home’s age and condition. At the end of the day, it is known that older homes may require more maintenance than a new construction home would. However, sometimes the age of a home doesn’t play as much as a factor, especially if it is located in a great area and provides great features.