Determining values in the real estate market is a process. Here are a few factors that are taken into consideration:
Comparable property sales – ensure that these include properties that are located close to the subject property. If properties located miles away from the subject are included, treat them as irrelevant.
Square footage – similarity in square footage is important as is a similar bed/bath configuration.
Age of house – they should have been built at around the same time. If buyers are looking at a house built in 1998 versus one built in 2008, then, yes, there is a big difference. However, if comparing a house built in 1965 and 1975, then, in a buyer’s eyes, the two houses are almost the same.
Comparable sales – look into the type of houses sold recently and the value at which they were bought. Analyze figures for the last six months to map out a sales trend. It is important that you know whether real estate prices have moved up in the last six months or not.
Buyers – when analyzing sales figures, if no house sales have been made in the last few months, then it is time to worry. There would be no point in you trying to sell your house, if there are no buyers in the vicinity.
Market listings – take a look around, and determine what your competition is like. How do those prices compare to yours?
Day on market – take a look at how long those houses have been sitting on the market.
Modification budget – estimate roughly how much it would cost you to make your house more desirable to potential buyers.
The price – do not get too greedy. Price your house in the middle range. You do not want yours to be the most expensive house. Put out a great house with a great price.