How Much More Will A Home Buyer Pay For THAT Feature?


How Much More Will A Home Buyer Pay For THAT Feature?
By Scott Rogers • August 23, 2024
A common line of thinking among home sellers can be... I know that the last three buyers in my neighborhood paid $X for their homes... but those homes didn't have ___ feature that my home does offer... so certainly, a buyer will pay $X + Y for my house. Pardon my overly algebraic explanation. Put another way... if your home has a particularly unique feature... that will be seen as desirable by many, most or all buyers... we'll need to think about how much more a buyer will be willing to pay for your house based on that feature. This can be a rather mundane unique feature, such as a brand new roof compared to all of your neighbor's 25 year old roofs... or it can be a rather exciting feature, such as a freshly renovated primary bathroom compared to all of your neighbor's bathrooms that haven't been updated since the 1980's. Regardless of what the main point of differentiation that sets your home above and beyond nearby competing homes... we'll eventually have to translate that feature into a value difference. How much more will a buyer be willing to pay for THAT feature in your house compared to what another buyer paid for a similar home WITHOUT that feature? We can think about that question in a variety of ways... How many buyers would find the feature desirable? How much did it cost you to add that feature? How much more do buyers pay for homes with that feature in other neighborhoods? In the end, though, we'll need to attach some dollar amount to the feature and decide if we are confident enough that a buyer will pay $20K for that feature (for example) such that we will price your home $20K higher than we would have otherwise. Receive Updates by Email Recent Articles: There Are Plenty Of Types Of Houses That Exist That Just Are Not Available To Purchase Home Sales By Price Range In The City Of Harrisonburg Are You Compromising On Aspects Of Your Next Home That You Can Or Cannot Change Later? How Much Slower Are The Winter Months In Our Local Housing Market? Rockingham County and New Home Sales Drive Surge in Area Housing Market Find The Balance Between Optimistic And Realistic Home Pricing Room Size Is Difficult To Understand Solely From Real Estate Photos How Much Would You Value Not Having To Prepare Your Home For Showings? One Out Of Four Homes Is Taking Longer Than A Month To Sell Consider The Cost Of Your Planned Renovations When Planning Your Offer
Have any questions? Contact Scott Rogers at 540-578-0102 or scott@funkhousergroup.com
Based on information from the Harrisonburg-Rockingham Association of REALTORS® or its MLS, for the period Jan 1, 2000 through Nov 21, 2024 (unless otherwise noted).
Comments (0) or Subscribe