How to Value a House in This Market
If you are preparing to sell your house, there are a few things you will want to know about how to value a house. Knowing your house value is always important. You want to list your house at the right price in order to attract buyers, but you also don’t want to sell yourself short. This is especially true during the coronavirus pandemic.
You may feel some degree of concern over how the pandemic has impacted the housing market and what that means in terms of your house value. The pandemic has caused major economic stress for many American households, however, many are in search of homes for sale and understand that as buyers they may face some competition in this market.
When considering how to value a house, it can be a bit of a challenge for many home sellers to not feel sentimental or even in some cases grandiose about their house value. It’s your home after all! It makes sense that you would want to get the best possible price for it.
Understanding House Value
Much of valuing a house has to do with the current real estate market. In the time of the coronavirus pandemic, special consideration must be taken when determining how the outbreak of the virus has impacted the market and the overall economy.
The worth of your house is basically the amount of money a buyer will pay for it.
Easy, right? It’s not quite so simple though. Lenders, agents or tax assessors will all weigh in about the worth of a home to help you establish your starting point. You may not like some of the answers you get, but it is important to consider all the figures closely when making your decisions.
Since knowing the value of your home is so important, this article will discuss a few of the best tools at your disposal for determining house value. But, why is this so important if buyers are going to be eager to negotiate anyhow and you can’t be sure of the interest your listing will garnish? There are many reasons, but most importantly you want to sell your house in a timely manner and you want to minimize any egregious offers that might come from listing at the wrong price. Knowing your house value will give you a leg up and start you off in the best possible place when selling your house.
The Best Tools for Determining House Value
One of the tools available to you as you set out to value your house is called a competitive market analysis. A qualified and knowledgeable real estate agent, such as those profiled on Homes & Land, will help you through the process of a competitive market analysis. It is not the same as an appraisal of your house, however, a competitive market analysis will give you a good idea of the value of your house so you can list it accordingly.
Online evaluation tools are yet another way to estimate your home’s value. Be aware that not all online evaluation tools are created equal and it is always more reliable to seek advice from an agent. However, there are a number of tools out there that can assist you in coming up with an estimate.
Look for evaluators that are endorsed by reputable companies for best results. Sophisticated evaluation tools will use public records to predict a value that is in stride with other current listings in your area. Such public records can include property transfers, deeds and tax assessments.
These tools can give you an idea of what to list, but they are only as good as their programmers and the math being used may not be as effective if there are not sufficient public documents available. Again, it is recommended to turn to a qualified and trustworthy real estate agent for the most accurate and up-to-date information about your home’s value before you list your house.
Professional home appraisers can be hired by you as the seller at any time in the process. Keep in mind that many agents provide help with valuation for free as part of their regular services or for a smaller fee. However, a professional home appraisal is used by a small proportion of home sellers to determine their home’s value.
Professional home appraisals use information about the market in your specific city or neighborhood. They also take into account the home itself and the land. They then look at properties that compare relatively close to your own, or as close as possible, to analyze sales, listings, number of vacancies in your city or neighborhood, cost of area/ cost of living, depreciation, etc.
After a professional home appraisal is made on your home you will receive all of this information to review. This is the same information provided to buyers when they are taking on a mortgage so it is good information to have, but may be a cost you are not looking to take on.
Have more questions about house values and selling in this market? Visit Homes & Land for the answers you need.