One of the most challenging and misunderstood aspects of selling your home is determining the appropriate listing price.
Most of us have seen the humorous video that circulated the internet for a few years now. It shows a beautiful mansion, which is how the tax assessor sees your home.
Next, it shows a typical, well kept home, which is how the appraiser sees your home.
Finally, there is a run down shack which is how a buyer sees your home.
While the video made us all laugh, it really is no laughing matter when you have a home to sell and need to decide on a listing price.
How do I come up with a
realistic market valuation of your home?
The first step is to do some research. That research will include a market analysis where I complete a survey of properties that recently sold which closely approximate the size, style,
condition, and location of your home.
I will also compare properties that are currently for sale, and those that did not sell.
I will take into consideration local depreciation or appreciation rates, as well as any significant improvements you have made that would warrant a change in market value.
One of the greatest misunderstandings in real estate is the “Re-Fi” appraisal. A re-finance appraisal is an appraisal of credit worthiness as much as market value of your home. When you looked to a lender to provide you refinancing, the lender looks first at your credit scores and payment history and then at your home. Many times the appraisal was a “drive-by” to simply verify for the lender that the house was located where you said it was and was generally in the same condition as when you purchased it. For marketing purposes, these appraisals often just don’t stand up to current comparative data.
The idea behind getting an accurate assessment
of your property’s value is to get a cross section of data
from several different viewpoints and then look for
intersections where the viewpoints overlap.
This creates a price range in which a property is likely to sell.
There are many variables to consider when determining the final list price. Some of these variables are quite specific but difficult to pin down. For instance:
What school or school district serves your neighborhood?
Do you have an active Homeowners Association? And how much does it cost?
Is there a swimming pool nearby?
Are you close (but not too close) to a bus stop, a bike trail, a park?
Does your home back to open space or a busy street?
Are you in an area that is developing and improving
or an area that may be a bit worn down and on the decline?
These are the intangibles that no “Zestimate” from Zillow.com or HouseValues.com can take into account when doing a quickie online survey of “What’s My Home Worth?” These sites can be great points of reference but are usually inaccurate in their valuations, either high or low.
Each region, municipality, neighborhood, street – even cul-de-sac – has its own set of characteristics that contribute to its property value. If a home is over-priced it will languish on the market.
Give me a call if you would like to know
the true value of your home in today’s confusing market!