Zeroing in on the value of your home is an important part of the selling process. You don’t want to leave any money on the table, but you also don’t want to price yourself out of finding a buyer. Some will argue that a home is worth what somebody is willing to pay for it… true, if they are paying cash. Keep in mind, if a buyer is getting a loan, the lender won’t lend more than what an appraiser will say the home is worth.
Here are some things to consider when determining the value of your home:
- What is the current market condition? Is it a seller’s market or a buyer’s market?
- Seller’s market – low inventory / high demand / homes selling above list price / multiple offers
- Buyer’s market – high inventory / low demand / lower offers / price reductions
- What is your selling motivation level?
- Highly motivated might equate to a lower selling price to move the home quickly.
- Not as motivated means you have the patience to wait for a buyer to come along, fall in love with your home, and pay a higher price
- Where is the property located? People are willing to pay a higher price for specific neighborhoods. You may have a very nice, upgraded home, but if the neighborhood isn’t desirable, that can bring down your home’s value.
- What is the condition of your home? Consider amenities, upgrades, updates, view, and curb appeal. Look at your home subjectively through the eyes of a potential buyer.
- What are similar homes selling for? This is called a ‘comp’ or a ‘comparable’. Generally, an appraiser will want to look at similar homes that have sold in close proximity in the last 45 – 90 days. You can also look at sales in the last 12 months to get a general idea. (In some states the sale price of a property transfer is not publicly disclosed. In these non-disclosure states, comparable information is not available.)
- What else is for sale? Take a look at similar properties that are currently listed for sale. This is your competition.
- What does the internet say? There is a sea of information at your fingertips regarding home value. Many times these resources are not very accurate, but it is good to take a look at what these sites are saying about the value of your home. Keep in mind that potential buyers are looking your property up on these sites as well. They are coming to the table with an offer after doing extensive research of their own. These are popular sites for exploring home values: Zillow, Trulia, Realtor.com
- How much do you owe on the property? If you purchased during a high time in the market and the prices haven’t recovered yet, there is a chance you could owe more on your property than what the current value is.
- Confused? Still don’t know what your home is worth? Contact a real estate agent for a Comparative Market Analysis (CMA). Ultimately you (the seller) will determine the asking price for your home. A good agent will provide very detailed information that includes their expertise and knowledge of a market. They will also interview you to understand your current situation. From here they will provide a suggested list price to help you make this important decision.
Seller’s Estimated Net Sheet / Calculator
When you are considering a listing price for your home or if you have an offer that has been presented, you can use this calculator to estimate your net proceeds: Home Sale Proceeds Calculator
When you decide to sell your home, you’ll need title insurance and escrow services. Feel free to reach out to us if you have any questions. We are title and escrow experts, and we are here to help.
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This content is provided for informational purposes only and is not to be construed as legal, financial, or real estate advice.