What is your home worth? This is a common question and one we field every day. Before we begin to answer, we need to define what the owner means by the question. We’d have some quick questions:
1. Are you asking because you are thinking of refinancing?
2. Are you going to sell now or in 6 months or in a year?
3. Will you make improvements to your home before it goes on the market? If so, what kind?
4. Will you de-clutter and have the home staged well?
5. Is it going to be easy for Realtors to show your home or will you want it to be “Appointment Only”? Will existing pets be an issue?
6. Are you going to introduce your property to the marketplace at the correct price or are you going to build in excessive “negotiating room”?
7. Are you just testing the market or do you have a compelling need to sell?
The answers to all these questions and more will have a real-world impact on the offers you will receive for your home from buyers and the price an appraiser will assign to it.
So what is the current market value of your home?
We use what is called the Sales Comparison Approach to reach a price we believe your home will sell for. This analysis involves searching for similar homes in your area that have sold recently (within the last 3 months) and comparing them with yours. We also use both homes that are currently available (it’s important to know the existing inventory…your competition) and homes that are currently Under Contract. We may not know what those homes got, but we do know where they were priced when they were successful in receiving an offer that they accepted. We also know how long they were on the market. Say they were only on for 3 days when they ratified a contract. The likelihood is that they got pretty close to the asking price.
When we compare homes what makes a “similar” property? Well, square footage is very important. Don’t let anyone tell you it’s not. The number of bedrooms and baths figure in also. Then there are upgrades or lack of upgrades. How old is the kitchen? Are the counters granite or laminate? New appliances or old? How’s the carpet? Are there hardwood floors? Do we have a 1-car or a 2-car garage? Is the yard landscaped nicely? Is the townhome an end unit? You get the idea.
This is why giving a price without seeing a home is like a doctor prescribing medication without giving an examination.
Next, we have to take into account the market conditions. Are things trending upward, downward, or are we in a flat market? Real estate is a very dynamic sector and a nationwide or even statewide overview is not enough to draw conclusions from. You need someone in tune with the specific micromarket you live in.
What’s the competition like? How many are out there? Can a buyer find a home the same size or larger with more upgrades or better community amenities for less than you’re thinking of going on for? Remember, buyers WILL do their homework. We make sure we do our homework for you.
Think of it this way: at any moment in time the homes we are selling are like little thermometers testing the temperature of the marketplace. With dozens of listings we always know what buyers are doing and have the pulse of which way the local market is headed. We have more homes under contract at any given time than most Realtors sell in a year, so we have exclusive knowledge that may benefit you directly. This gives our clients the ability to lead and not just react. It also serves to strengthen our negotiating hand.
If you are thinking of selling, let’s work together to make your experience a positive and profitable one.
In the meantime, we can provide you with a powerful tool called “Market Snapshot” that will allow you to track sales activity in your area. It will show you recent sales, pending sales and active listings around your home. If you are thinking of selling, or just curious about what similar homes are selling for, this is interesting info to see. Sign up below and receive your personalized Market Snapshot and every month it will send you updated information on market activity in your area.
CLICK HERE to sign up and begin receiving your customized Market Snapshot!