Sign in Home Selling Tips Reading Time — 8 minutes June 4, 2022 By Joe Gomez Reading Time — 8 minutes June 4, 2022 Your home value is based on what willing buyers in the market will pay for your home, but every buyer is different. For example, one family might weigh location factors like schools and jobs over the size and condition of the home. We’ve outlined some of the most important factors that influence your home’s value: One of the best indicators of your home’s value is the sale prices of similar homes in your neighborhood that have sold recently. These comparable homes are often referred to as “comps”. Whether it’s a home appraisal, a comparative market analysis done by an agent, or an Opendoor evaluation, most real estate experts will rely on comps to estimate your home value. Recency: Look for homes that were recently sold—the more recent, the better. Feature Similarity: Choose homes that are most similar to yours in terms of features like type of home (two-story vs. ranch), year built, number of bedrooms, bathrooms, and square footage. Distance: When possible, choose homes in the same subdivision as your home. This is because the house a block over may not be a good comparable if it belongs to a different subdivision with different HOA rules, school district, etc. Location: If your home has a unique placement, such as on a busy street, golf course, or waterfront, look for comps that have the same placement. The problem is that no two comps are the same so you’ll need to make adjustments for key differences. It can be very difficult to do this manually when comparing granular details like vaulted ceilings, proximity to a good school, or something abstract like a scenic view. To be precise you’d need to account for each different feature, and ideally you’d need to look at a lot of comps. Luckily, computers are really good at this task. For example, we combine a robust data model that can analyze hundreds of pairs of comps for any given address with insights from local pricing experts. We’re then able to provide home sellers with a competitive, cash offer in 24 hours so they can simplify the process and move on their own timeline. → Curious about your home value? Start with a cash offer from Opendoor to price your home. The process is free. Your current home may be the ideal location for you — close to your job or near your parent’s house — but when appraisers determine how much value to assign based on the location of the house, they’re looking at three primary indicators, according to Inman: The quality of local schools Employment opportunities Proximity to shopping, entertainment, and recreational centers These factors can influence why some neighborhoods command steep prices, and others that are a few miles away don’t. In addition, a location’s proximity to highways, utility lines, and public transit can all impact a home’s overall value. When it comes to calculating a home’s value, location can be more important than even the size and condition of the house. → Learn more about how we calculate the value of your home. When estimating your home’s market value, size is an important element to consider, since a bigger home can positively impact its valuation. The value of a home is roughly estimated in price per square foot — the sales price divided by the square footage of the home. Say a 2,000 square foot house sold for $200,000. The price per square foot would be $100. The price buyers will pay per square foot can vary greatly. Depending on where you’re buying, $100 per square foot may be a bargain or far more than it’s common to pay. In addition to square footage, a home’s usable space matters when determining its value. Garages, attics, and unfinished basem*nts are generally not counted in usable square footage. So if you have a 2,000-square-foot home with a 600-square-foot garage, that’s only 1,400-square-feet of livable space. Livable space is what is most important to buyers and appraisers. Bedrooms and bathrooms are most highly valued, so the more beds and baths your home offers, the more your home is generally worth. However these trends are very locally specific. See our blog on renovations that can improve the value of your home. We rank the top projects and explore trends in our home improvement data. Typically, homes that are newer appraise at a higher value. The fact that critical parts of the house, like plumbing, electrical, the roof, and appliances are newer and therefore less likely to break down, can generate savings for a buyer. For example, if a roof has a 20-year warranty, that’s money an owner will save over the next two decades, compared to an older home that may need a roof replaced in just a few years. According to HomeAdvisor, the average cost to replace or install a roof in 2019 is just under $8,000. Many buyers will pay top-dollar for a move-in-ready home. This is why most buyers require an inspection contingency in their contract — they want to negotiate repairs to avoid any major expenses following the sale. Our home maintenance and repair checklist can help you identify key areas of your home to inspect before selling. And if you want to sell your home and skip repairs altogether, learn how the process works with Opendoor. Updates and upgrades can add value to your home, especially in older homes that may have outdated features. However, not all home improvement projects are created equally. The impact of a project or upgrade varies based on the market you’re in, and you’re existing home value. For example, based on data from our home improvement value calculator, a finished basem*nt in Portland is 5x more valuable than finishing a basem*nt in Atlanta, a roughly 13% increase on the median home value versus 2.5% respectively. Additionally, some projects like adding a pool or wood floors tend to have bigger increases for more expensive homes, while projects like a kitchen remodel or adding a full bathroom tend to have a bigger increase for less expensive homes. → Try our home improvement calculator. See which projects can have the biggest increase on your home value. Even if your home is in excellent condition, in the best location, with premium upgrades, the number of other properties for sale in your area and the number of buyers in the market can impact your home value. If there are a lot of buyers competing for fewer homes it’s a seller’s market. Conversely, a market with few buyers but many homes on the market is referred to as a buyer’s market. If you’re buying in a buyer’s market, you’ll likely have more room to negotiate on the home’s price, timeline, and contingencies in the contract. Although if you’re selling in a buyer’s market, you may have to adjust the price to attract more offers or be willing to make concessions to a seller, like paying closing costs, covering repairs, or being more flexible with the timeline. Additionally, market conditions can affect how long it takes your home to sell. In a seller’s market, homes tend to sell quickly, whereas in a buyer’s market it’s typical for homes to see longer days on market (DOM). DOM is a real estate statistic that indicates how long homes are actively listed before a contract is signed. If your home has been on the market for a longer period of time, buyers may perceive there is something wrong or that the price is too high. See our tips for selling your home fast. The broader economy often impacts a person’s ability to buy or sell a home, so in slower economic conditions, the housing market can struggle. For example, if employment or wage growth slows, then fewer people might be able to afford a home or there may also be less opportunity to relocate for new opportunities. It’s important to keep up with the current status of home sales and home price appreciation in your area, especially when as you evaluate the best time to sell your house. We created a guide to understanding today’s housing market to help anyone who isn’t an expert or a psychic understand how current trends impact both buying and selling a home. → Planning on selling? Compare the costs of selling to Opendoor to the traditional process. Why care about interest rates? Both short-term interest rates (like what you pay on a credit card) and long-term interest rates (like what you pay on a mortgage) influence your ability to afford a home, but in different ways. A rise in short-term interest rates may increase the interest on your savings, but it also makes short-term debt more expensive. For example, if you’re spending more money paying off a credit card or short-term loan, then you will likely have less money available in your budget to afford a home. Short-term interest rates don’t directly impact long term interest rates. So an increase in the Federal Funds rate, doesn’t mean a 30-year, fixed-rate mortgage will become more expensive. Long-term rates are influenced by Department of the Treasury yields, investor sentiment, and inflation rates, among many other factors. You can learn more in our blog on interest rates and home ownership. The point is as interest rates increase, fewer people may be able to afford homes, and this can impact how much you can sell your home for. We cover current interest rate trends in our guide to understanding the housing market. It’s easier to avoid common home-selling mistakes when you’re aware of the factors that influence your home value. Consider these factors in mind when pricing your home to help attract serious buyers and to prevent long days on market, which ultimately, come at a cost. Home Selling Tips October 17, 2019 Home Selling Tips March 12, 2019 Home Selling Tips August 29, 2019 1. Neighborhood comps
Advice for finding comps
2. Location
3. Home size and usable space
4. Age and condition
5. Upgrades and updates
6. The local market
7. Economic indicators
8. Interest rates
Final thought
Unlock an offer on your home
Further reading
FAQs
How accurate are Opendoor preliminary offers? ›
Keep in mind that Opendoor's initial offer is almost always higher than its final offer. That's because the "instant" cash offer is an estimate based on information you provide to Opendoor about your home's size, age, and features. It doesn't account for the actual condition of your home.
Is Opendoor accepting low offers? ›Yes, we will negotiate your offer to purchase a home with Opendoor. We send counteroffers by email and we can negotiate by email or phone until an agreement is reached. Depending on the other terms of the contract, we will also negotiate closing costs. In the process of selling your home to Opendoor?
Can sellers negotiate with Opendoor? ›If you're selling to Opendoor, the company is unlikely to increase its offer. However, you (or your agent) can ask the company to reassess your home if you believe it missed features that could affect the home's value.
Do I need to fix everything in my house before selling? ›So if you're wondering “can I sell my house without making repairs”, well, technically, repairs are not required to sell a house in California.
Is the first offer on a house usually the best offer? ›When You Get an Offer as Soon as It Hits the Market. It may be tempting to hold out for a better price when selling your home, especially when your home is newly listed. However, there's a rule of thumb in real estate that the first offer you receive is usually the best.
What is a realistic first offer on a house? ›For example, let's say you see similar homes being sold for $10,000 to $15,000 less than the asking price of your potential home. If you're in a buyer's market, it's probably safe to make an offer $10,000 below the asking price.
Is Opendoor Final Offer really final? ›Is Opendoor's final offer actually final, or can it change? Opendoor's final offer may be negotiated, but it is not likely to change without an error in valuation. The final offer may also change if the company previously failed to consider a major selling point that impacts the home's value.
What are the expectations for Opendoor? ›Looking ahead, Opendoor anticipates second-quarter revenue to be between $1.4 billion and $1.5 billion, with a Contribution Profit forecast of $75 million to $85 million and an Adjusted EBITDA ranging from $(35) million to $(25) million.
Is it worth it to sell to Opendoor? ›How much will Opendoor pay for my house? Opendoor typically pays much less than what your house could sell for on the open market, and it usually won't negotiate. Since you have no obligation to accept an Opendoor offer, you can walk away if you decide it's not worth it.
Is Offerpad or Opendoor better? ›Opendoor is a smarter alternative than Offerpad as it has no cancellation fees, extends better offers than Offerpad, and is more flexible with closing timelines.
Can you cancel an Opendoor contract? ›
Selling a home is a big decision, and we understand that plans change. You can cancel your sale at any point prior to close of escrow without penalty or fee. If, for any reason, things change and you or your client no longer want to proceed with the sale, let your Home Advisor know.
Does Opendoor have a cancellation fee? ›You can cancel your home sale any time before closing without cost or penalty.
Do you leave nails in the wall when you sell a house? ›Remove Pictures, But Do Not Remove Nails or Fill Holes in Wall When Selling Your House - Eric Andrews Realtor.
Why does no one want a fixer upper right now? ›Veronica Dagher: Well, one of the reasons is they just don't want to hire a contractor. It's a lot of work to do that, and it's hard to find them these days, but the big factor here is high mortgage rates. So, buyers are already spending a ton of money to get that mortgage.
Should you clean a house before selling? ›Buyers expect to move into a house that is clean and empty. And those selling a home often add a thorough cleaning to their to-do list. Most get a head start on cleaning to get the home ready to put on the market.
What is the Opendoor controversy? ›According to the FTC's August 2022 complaint, Opendoor cheated home sellers by tricking them into thinking that they could make more money selling their home to Opendoor than on the open market using the traditional sales process while saving them money on costs.
How much does Opendoor Lowball you cost? ›Opendoor extends lowball cash offers that are just 70%-80% of your home's fair market value. Opendoor's 5% service fee reduces the total equity you get for your home. Opendoor has a strict eligibility criteria for the properties they purchase.
Does Opendoor do a final walkthrough? ›Once the home is vacant and cleared of any belongings, you and your client can upload photos instead of completing an in-person final walkthrough. You can do this right from the dashboard you access at opendoor.com/agents.
How many times do people look at a house before making an offer? ›Usually a buyer sees the home two or three more times after the first visit: a trip just to make sure before signing a contract, a visit with the appraiser and a walk-through just before closing.