Scrolling through Trulia, Zillow, or any other real estate website, you may see a wide range of price ranges for different areas. The question comes down to: what goes into pricing a home and what makes some homes more expensive than others? The truth is the value of a home depends on many factors, and there’s not a simple answer. To explain how the pricing of homes break down, we’ll use our currently for sale property: 4656 W Village Drive, Smyrna, GA, priced at $435,000.
Location: Different areas have different home prices. Job opportunities, crime rates, nearby amenities, and the school district can all change the price and popularity of your home. This property is right next to West Village, making it an easy walking distance to restaurants, parks, salons, and the local library. West Village is also where many of Smyrna’s big events occur, making it a prime location for families and couples that love to get out and join the community.
Size: In America, bigger is better. In housing this translates to the majority of buyers loving master suites, large kitchens, and walk in closets. Furthermore, with many families looking for forever homes, the number of bedrooms and bathrooms in a house play a role in pricing. 4656 West Village, for example, is considered a large home. It features a large master suite with a walk in closet and double vanities. It has 4 bedrooms and 3.5 bathrooms, ensuring that everyone in the family has their own personal space.
Land: Land is a valuable commodity and investment. In locations where land is truly scarce, having an acre instead of a half acre can completely change the price of the house. But remember, not all land is valued equal. You can buy much more land for your buck in the country than you can in the city.
Age: Newer homes tend to be slightly more expensive than older homes. This is partly because newer homes tend to come with more modern features that appeal to today’s buyers. Our West Village property is only a few years old and features updated amenities such as custom built ins, hardwood flooring, and stainless steel appliances. Furthermore, an open kitchen, private dining room, and wonderful patio make this home a spacious venue for hosting.
Previous Sales: Real estate agents and home estimate tools often pull up the prices of similar houses in your area that have sold in the past. These homes are often the best indicator of the current surrounding market and give a baseline for pricing your home.
It takes a lot of information to competitively price your home, and each tidbit has to be weighed against another. West Village, priced competitively at $435,000 is a large home in a very popular location. Here at Keller Williams, we are able to accurately price homes because we are equipped with all of the tools necessary to not only accurately gauge each home’s price, but also guide you through each step, and help you buy or sell for a fair market price.