When a homeowner is ready to sell their home or wants to have its current value verified, the homeowner needs to take time assessing the value of a home and land, understand the current economic conditions in real estate, and know the steps it takes to properly sell the house.
Without being properly educated on the valuation of a home, the homeowner may miss out on the opportunity to maximize the initial asking price of the home or receive better offers on refinancing the home.
Here is a quick lowdown on the steps it takes to assess the value of your home.
Assessing the Value of a Home
The assessed value of a house is an estimation of the value of your house as it stands today. Before you set the target price on the listing, you need to assess the value of the home. Several factors can increase or decrease the value of a home.
These factors are as follows—
- The location of the home and local market conditions
- The size of the home and age of the structure
- Assess the value of comparable properties in the same area
- Condition of the property; including added value for renovations
There are online tools that can be used to assess the value of a home. Using a digital tool may be an easy way to assess the price of housing in the area.
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Is it a Buyer or Seller’s Market, And Why It Matters?
When selling a home, it is important to know if the asset will go on sale when it is a buyer’s market or seller’s market.
By understanding the current economic state in real estate, you will know how to price the house accordingly.
If you do not understand the current economic conditions in real estate, you could be leaving thousands of dollars on the table during negotiations.
Buyer’s Market
A buyer’s market happens when there is a high supply of houses available on the market and a lower demand of sellers, or people looking to purchase a house.
Since there are fewer people buying houses, you may have to lower the price of your house to stay competitive with other sellers in the comparative market.
The amount of time the real estate will be on the market may be a bit longer during a buyer’s market.
Seller’s Market
A seller’s market is when the supply of homes is low and the amount of people wanting to buy a house is high.
During a seller’s market, the price of the house or property will rise. The seller can be more selective with the offer they choose to accept.
Benefits of Knowing the True Value of The Home
There are many benefits to knowing the value of your home. First, when it comes time to sell, you can list the property at a price that will help you maximize your return.
Secondly, if you know the true value of your property, it will be easier to refinance for better interest rates or you can take out a home equity loan or second mortgage on the property.
Now That You Understand the Value, Are You Ready to Sell?
Now that you understand several factors come into play when assessing the value of a home and setting the price.
If you do not feel comfortable coming up with the valuation of the home yourself, the are companies offering services to create a Comparative Market Analysis of your home, for a small fee.
With that service, you can be rest assure the value of the home listed in the Comparative Market Analysis will be accurate.
