Possible home buyers seem to be giving low offers on a property prompting the homeowner to wonder why. The listings of other properties in the neighborhood reveal a wide range of prices. Houses not too far from one another may range in price from $70,000 to $140,000. Such a massive difference in price likely means one thing: the condition of the home is, ultimately, setting the price. Arbitrarily placing a price on a home for sale does not exactly lead to acquiring the right offers. Homeowners should examine valuation factors and engage in a little investigative work to figure out a better sale price.
Look at the Sales History of Homes
The last time a home was sold might give a few indications as to why the property comes with a high or low figure. A home that was last sold in 1985 may have a lower sale price than one last sold in 2004 because renovations have not been made. A property owner putting a home up for sale should keep this in mind in relation to the condition of his/her house. Older homes in need of cosmetic or other changes are simply going to be valued lower.
Perform a Complete Valuation Inspection
Learning about the condition of other properties is difficult since information is limited. A homeowner can, however, determine a reliable level of value to a property based on having an inspection performed. The inspection should log all the things that can affect the value of the property. A basement may be in reasonable condition, but the cement floor may be uneven and have several cracks. The kitchen may be decent but very old and in need of an upgrade. Overall, the bricks on the side of the house are fine, but a few sections need crumbling mortar replaced. The homeowner can make a decision as to whether or not to fix such things. Regardless, the immediate information presented provides data for a better estimate about the property's worth.
Visit the Location of Less Expensive Homes
Simply walking by the lower-priced homes may reveal a lot. A property located in close proximity to a bar or even a car mechanic garage might need a lower price since would-be buyers may be concerned about noise or the inability to find parking. Simply checking the properties out provide decent indicators why some homes are going for less and others going for more.
Talk with the Realtor
Jumping to any conclusions about price -- high or low -- is ill-advised. Data from research and investigations should be run by a real estate agent so a proper sale price can be concluded.