What is my home worth? This question is the first and most important question you should answer when getting ready to put your house on the market.
Even if you are not planning on selling your home anytime soon, it is always a good idea to know your property value in order to keep tabs on your Real Estate investment.
Learn just what makes buyers tick and how to properly and efficiently price your home with these five important tips:
Online home value estimates
A good place to start in order to get a general idea of what your home is worth, is to utilize online tools such as our Home Value Report.
This report takes the address of the property you wish to sell and runs a Comparative Market Analysis, or CMA. A CMA is a side-by-side comparison of homes for sale and homes that have recently sold in the same neighborhood and price range.
This information is further sorted by data such as type of home, number of bedrooms, number of baths, lot size, neighborhood, property condition and features, and many other factors. The purpose is to show estimated market value, based on what other buyers and sellers have determined through past sales, pending sales and homes recently put on the market.
This report will even tell you the average number of days on market for the sold homes in your neighborhood.
Real Estate expert home value estimates
Real Estate professionals can determine what your home is worth through a similar process, but their knowledge and expertise run much deeper and you can expect more accurate results.
Not only will Realtors look at similar homes in your neighborhood that have sold recently, they also look at what is currently on the market in order to price your home competitively.
This is another reason why it is so important to use a listing agent when selling your home. They can assure you will receive top dollar for your property.
Potential buyers will also be looking at similar homes in your neighborhood so you must be prepared to explain the difference in price tag, if any, in order to secure an offer.
Your listing agent will be able to work with the buyer’s agent in order to effectively answer these questions, which means less skin off your back. This is how some homeowners are able to sell their houses for above asking price.
The price is right, but is it just right?
After thorough research, talking with your listing agent, and performing several CMA reports, you’ve snagged it – the perfect market price! However, is it really?
Most buyers begin their home search online. We have all been there. You go to your Real Estate search site of choice and immediately input your preferences. When selecting your minimum and maximum price, we can assure you there will not be an option for odd number increments.
By listing your home at say, $307,000, you aren’t reaching potential home buyers who are searching in the $250,00 – $300,000 range.
Marketing your home’s fair market value is just as important as determining it. Awkward pricing will only confuse buyers and make your home harder to sell.
Sacrifices you may have to make
Firstly, you will have to come to terms with the fact that your home may not be worth as much as you think. It is difficult for homeowners to realize that such a personal investment for them may have devalued over time.
If this is something you are having a hard time accepting, there may be certain home upgrades you can make to increase your Return on Investment, or ROI.
Read more about if you should sell your home “as is” or renovate.
Secondly, you will have to consider the possibility that you may have to reduce your asking price if your home has been sitting on the market for an extended period of time.
Buyers usually get wary when they see a home that has a high DOM, or Days On Market.
However, we are currently in what is called a seller’s market, which means there is a high demand for houses and low supply has been rolling in. In other words, there are more buyers than homes for sale.
Determining your home’s market value does not have to be as complicated as it may seem. If you utilize the right tools, and turn to your listing agent when in doubt, you will have your home sold in no time!