What is a Home Worth in Lansdowne on the Potomac?

As a real estate professional the two questions I get asked the most is how is the market? And what is a home worth?  Two question that are very similar but have very different answers and methods for answers. How we determine what a home is worth will always be specific for a specific community and will compare very similar properties to each other while the broader question of how is the market is a more general assessment of all activity.Lansdowne on the Potomac Home

Lansdowne on the Potomac Homes for Sale

So What is a Home Worth in Lansdowne on the Potomac.

To determine what your home is worth in Lansdowne on the Potomac or any neighborhood we look at two distinct groups of factors, indirect and direct. Direct factors that affect your homes worth or value include Community, Neighborhood, Schools, Amenities, Transportation, Zoning and planning for future growth. Indirect factors will include Economic Factors, Demographic Changes and Perceptions. As the golden rule of real estate tells us, Real Estate is local, or Location, Location, Location. Homes will sell or not sell for one of three reasons regardless of the market, Price, Condition, or Location. As agents and homeowners we only have the ability to manage price and condition. The physical location of a particular property is what it is. All of these factors will be used to determine what a home is worth in Lansdowne on the Potomac.

The Process to determine what a home is worth

The single most important factor to consider when you are considering putting your home on the market is the price tag: how much is your home worth?  There are many factors that we use to arrive at our opinion of market value. Determining what your home is worth, is part statistics and part art. It is most important to not over price a property as this will limit interest and, after the initial two or three weeks the property is on the market interest and demand will begin to drop as the listing becomes stale. Pricing below the market may result in a situation where you receive multiple offers that will actually result in a better sales price than pricing high and making price reductions. No two agents will determine what a home is worth exactly the same but all should be within about a 2%-3% range if they use a good method to determine what a home is worth.

So how do we do it? The first step to answer the question of what is a home worth  is to pull comparable listings from our local MLS and look at Active, Pending, Withdrawn, Expired and Sold for similar properties. Some factors used to consider a property similar would be:

  • Similar home in the same neighborhood
  • Within 1-2 miles of the subject
  • Finished square footage within 10% up or down
  • Similar age, generally within 10 years
  • Neighborhood dividing lines such as major highways
  • Lot Size

So now that I have all of these comps, let’s look at each separately as we do when we are looking to see what a home is worth in Lansdowne on the Potomac.

Sold Comps

When looking at sold homes we first start out looking at the history of the property over the last 1-2 years. Was it listed before, how long, were there price reductions, what company had the property listed. All of these factors will help us to determine if the property was priced and marketed correctly.  We then will compare the final sale price to the actual list price of the home at the time of sale remembering to adjust for any seller subsidies paid on the buyer’s behalf.  From this difference we will determine if the property was sold within the ratio of list to sales price for that particular neighborhood. Price reductions for each sold comp will also be looked at to determine if the home was initially listed to high or not. Now here is where some of the art comes in, we look very closely at whom had the home listed and how it was marketed. Not all companies are created equal and marketing does matter in real estate. After considering these factors we will adjust for variances to the subject property. These adjustments can be up or down and will consider factors like lot size, location, lot type, configuration, finished square footage and amenities within the home and community.

Withdrawn and expired listings

We look at similar expired and withdrawn listings to determine why a property did not sell. The factors we use to determine is a listing is appropriate are the same as for sold listings. Days on Market, Price reductions, Condition and which brokerage had the property list are important factors to consider when looking at why a home did not sell.Lansdowne on the Potomac

Pending Sales

While the final sold price for pending sale is not available until a property actually closes, it is important to look at Days on Market and the listing history for the current listing to see if there were any price reductions and how long it took to receive an offer.  While a listing agent will not tell anyone what the contract price for particular home is until it closes, often agent will talk to other agents in general term about a specific property and you will be able to determine whether a property is going to sell for above or below where it was listed. Again it is important to consider Price, Condition, Location and how the property was marketed.

Active Listings

Active listings are your competition. As a listing agent we will tour other properties to compare them to our clients. We will also look at how long a property has been listed, were there any price reductions, how many price reductions and how the property is being marketed. We then compare the competition to our client’s property using the same factors we use to determine if a property should be considered a comparable listing.

It is very important to make sure you hire a competent real estate professional when you ask yourself the question, what is a home worth in Lansdowne on the Potomac? If you have question about your home’s value if you are considering selling or not please contact us. We will be happy to provide you an analysis of your home’s value as well of your local real estate market. As the market continues to improve as we move into 2013 home owners should take an assessment of where they are and stop wondering what their home is worth and contact Loudoun County Living LLC and find out.

About Barry

Keller Williams Reston/Herndon
11700 Plaza America Drive
Reston VA 20192
Keller Williams Leesburg
50 Catoctin Circle NE #101
Leesburg VA 20176
Licensed in Virginia

Speak Your Mind

*