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Tue, Jul 22, 2014

Various factors determine price at auction

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People always want to know what how much their home will sell for at auction. There are many factors that can affect selling price of a home at auction.

First, as in all real estate, location is essential.

Is your home located in a desirable area that people are wanting to live? Or have many residents been selling out and moving on? Some areas are highly sought after by investors for rental property. If your neighborhood rental rate is growing, more than likely your property value is headed downward. On the other hand if your home is located in a desirable school district or an area that is growing economically, your home value is probably going up.

Second, what is the condition of your home?

Does it need updating throughout? Are there structural issues? Buyers will almost always double or triple the actual cost to have something updated or repaired and this will reflect in what they are willing to pay for a home. For instance, if a home needs painting and carpet that would actually cost about $3,000, buyers will ultimately decide it needs $10,000 worth of work. If you want buyers to pay top dollar, make sure you know your home and have any issues resolved before you sell.

Third, is the design of your home something buyers are currently looking for?

Personal preferences and attitudes change over time and many buyers today want modern looking homes. Some homes that are very practical and make great homes for the average person, are not as desirable because they don’t conform to what buyers consider the “look” they want. If your home has lots of steps (split level) it won’t be as desirable for many people that don’t want to or can’t climb stairs. A home will all bedrooms located upstairs is not as popular because of the stairs and safety concerns and usually take longer to sell and sell for less money.

Fourth, what do the homes next door look like?

Are they well kept with the yards neatly mowed? Do your neighbors maintain their homes like they should? Many buyers  consider their future next door neighbors when looking at a home. Remember, they are going to be living by these people for a while. If you neighbor isn’t mowing his yard and leaving trash bags on his porch, the neighbor is hurting your property value. Luckily, in the city, you have codes that can force your neighbor to clean up his act.

However, in the more rural areas, this isn’t an option. The neighbor with chickens, five dogs and eight cats running loose may not see a problem, but you as a seller surely will.

So, when you think about selling your home at auction or by a traditional real estate method, be sure you talk to a professional who will give you an honest opinion, not just one that says, "Oh, that won’t be a problem, nobody looks at that stuff." If you hear those words, you need to talk to someone else.

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Auction, Housing, Real Estate, Voices
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