Despite recent economic trends, the Middle Tennessee real estate market is still hot. And it continues to be a seller’s market with low inventory and lots of newcomers to the region.
If you’re thinking this is a great time to sell your home, one of your first tasks is to determine your home’s value in order to set a listing price. This can be a tricky situation, especially in our current local market.
Let’s talk about what goes into setting your home’s value.
Comparables (aka Comps)
The quickest way to get an idea of what your home is worth is to do a little internet research looking at the sale prices on recently sold homes similar to yours in your neighborhood. In real estate lingo, this is called checking the “comps,” meaning homes that are comparable to yours. But don’t just look at the house two doors down and assume your home will bring the same price. If that house has 2,000 more square feet, a larger lot, and multiple upgrades, it is not “comparable” to your home. Check out other homes in nearby neighborhoods and areas, as well, to get a clear picture.
It’s the oldest phrase in the real estate books, “location, location, location,” and it’s still referenced today because it’s always going to hold true. The value of your home can be strongly affected by its location. Is your home in a popular neighborhood, near shops and restaurants, and easily accessible to/from the major roads and interstates? That may be appealing to many people and raise the value of your home. If your home is in a more rural area, requiring a 20-30-minute drive to reach the nearest grocery store or gas station, your home’s value will be influenced by the number of house hunters looking for such a peaceful, secluded environment.
Once you identify homes in areas similar to yours, the next big question is, “how big is the house?” An estate style property with 10 acres of land and a 20,000 square foot home is, naturally, going to be higher priced than a 2,000 square foot home on ¼ acre in a subdivision. That doesn’t mean the smaller home is not as “good” as the larger one. It simply means more went into buying the land and building the home, and a potential buyer for a large estate home is quite different from a family looking for a smaller neighborhood home.
Another important factor to consider when discussing size is the number of bedrooms and bathrooms in your home. There was a time when most family homes had one bathroom, but times have changed. Today home buyers are looking for homes that give them the ability to accommodate a busy family without needing a chart to indicate whose turn it is to shower.
Upgrades and Renovations
If you’ve owned your home for very long, you may have done some renovating and upgrading. Maybe you installed granite counter tops, or added a bath or powder room, or you may have swapped builder-grade lighting and fixtures for something more stylish. Renovations and upgrades all have the potential to increase the value of your home, some more than others. Adding a bathroom is going to bring more value than installing an in-ground swimming pool, so consider what those upgrades are worth in terms of sale price.
Age and Condition
The age and overall condition of your home will play a significant role in its value, as well. As homes get older, they often tend to lose value unless renovations are made. The condition of your home will also make a difference. If your home is well maintained and you’ve taken care of repairs as the need arose, your home will be more attractive to buyers. However, if the potential buyers see that repairs and remodeling are going to be necessary from the beginning, the estimated costs of those repairs will bring down the value of your home.
One final, important consideration in valuing your home is assessing the local real estate market. Are homes in your area staying on the market a longer time? Are buyers looking for home sizes in neighborhoods that are different from yours? Or has there been a continual influx of families from other states moving to your highly desirable city, making your home more in demand?
If you are in the Middle Tennessee area, you may know that the real estate market has been booming for the past few years. Nashville is now considered an “It” city, and many large corporations are still setting up hubs and headquarters in the area. This means more people coming to town looking for homes and, due to supply chain issues during the pandemic, new home construction has slowed.
If you want to get expert information about the housing market in Middle Tennessee and what’s happening with home values, an experienced, licensed realtor like Susan Gregory can provide assistance and guidance. Susan is a top agent in the state and knows how to price and position your home to move it quickly. Call 615-207-5600 for your home buying and selling needs.