The first thing you need to know when
selling your home is the value of your home. Although nobody
can predict what your house will sell for, a real estate
professional can give you a Competitive Market
Analysis of your property that will show you what
similar homes have sold for in your neighborhood and establish
a price range that yours may sell in. Establishing a price
range is important since no two homes, or no two buyers
are exactly alike. What one buyer will pay for an extra
bedroom may not even come close to what another buyer would
pay. Another common misconception is that property always increases
in value and that the cost of an improvement will
add to the value. Although, historically, real estate has
always been a good investment, real estate values can go
down. Some improvements can add no value, regardless of
the cost. Other improvements may add much more to your
value than their cost. Pricing your home too high or outside
of that price range could cost you thousands dollars in
the time it takes to market your home or in the loss of
the buyer who would have paid the higher end of your range.
The buyer who will pay you the most money for your home
at any particular time is most likely working with an agent
and waiting for a home to come on the market in your community.
If your home is priced outside of the normal range, they
may never look at yours at all. Even if they haven’t
bought anything later on when you have lowered your price,
they will rarely come back to yours. Obviously, if your
home is priced too low, it will sell very quickly. Where
you price your home in the price range established from
the Competitive Market Analysis, will determine if and
how quickly your home will sell. An appraisal by a licensed
or certified appraiser will give you their opinion of
the value of your property with a specific dollar amount.
Their opinion is also based on what other buyers
have been willing to pay for homes in your community. Putting
a specific opinion of value on your property does
not mean it will sell for that amount. The appraisal may
not be used for any other purpose and another appraisal,
or opinion, will be needed when your property sells. Your
real estate professional can help guide you through this
valuation process to help you get the best price, in the
least amount of time, with the least amount of inconveniences
to you.
