Determining Market Value
Who determines the value of your home?
Real estate value is not based on how much one paid or how much has been invested in remodeling. Value is not established by how much the seller needs out of the sale. Value is not set by the seller, the buyer, the real estate Professional, the lender or even the appraiser. In reality, the value of your home is set by the market. The market is your neighborhood or similar subdivisions. Sales in subdivisions that are comparable in size, age, style, and settings are analyzed and compared. From a lender’s view, the value of your home should correspond to and fall within the range of these sold properties.
Is it advisable to obtain an appraisal before placing our home on the market?
In most cases, it is not advisable to pay for an appraisal at the start of the selling process. The reason for this is that each loan program has its own set of requirements. For example; suppose you hire an appraiser to appraise your home. He will ask, “Which guidelines should we use?” You and your appraiser agree to use FHA standards; after all, alot of people use FHA to finance a home. A problem could arise if your buyer is going VA. In short, you spent $550 for the FHA appraisal which is now no good, and you will have to spend another $550 for a VA appraisal.
How can we determine the best and most realistic price for our home?
You can pick up the fliers from properties being offered for sale in your neighborhood. If a neighbor had a home on the market, you might just ask him what he got for his home. The only problem is that you already know what he was asking; the question is “What did you receive?” Most of the times there is a big difference. To save face, the seller, in most cases, is only going to discuss with you what he was asking, not what he received.
Value for your property could be determined by how much you need to make this move, or how much money you have put into your home. This will, in most cases, cause you to choose an unrealistic, above market value for your property. The outcome will be that your property will sit, being overlooked by the buying market. Those homes around you that are being offered at a fair market value will have sold long ago.
As trained, and experienced real estate professionals, we can help you analyze the market place and help you come up with a reasonable, fair market value for your property. By exposing you to our computer data base of sold properties, you can formulate your own conclusions. You will be exposed to the same material that an appraiser will use to formulate his appraisal. Determining a true fair market value for your property is more than a stroll around the block or a quick glance at the newspaper for sale notices. Simply put, too much of your money is at stake. By using our services as a professional real estate agent, you will save money, time and gain peace of mind!
Please use the form below for any questions you may have.