Tuesday, July 2, 2013

Effective ways to determine value of your home


So, you want to sell your home. Knowing the value can be an important factor while pricing your house when you put it on the market. The value of a house changes with numerous factors including the neighborhood around it, local house marketing, age and remodeling etc. You need to figure out what your home is worth properly because, if your home is overpriced for your area, buyers will shy away from it, whereas an underpriced home will puzzle the buyers. Further, you have to compromise with your profit too. If you want to get the best deal for your home, then you have to price and present your home properly.

The market eventually determines the true value of your property. Here are some points to consider before comparing your home to similar properties and setting up a competitive list price-

·         Size
·         Location
·         Community amenities
·         Condition
·         Financing Options
·         Buyer supply


Pricing your home correctly means:

ü  Higher exposure to more potential buyers
ü  Your home does not lose its ‘marketability’
ü  Higher probability of quick deals
ü  More competing offers for the price closer to market value

Market analysis - You should get to know about the market to find out the current trends and what today’s buyers are ready to pay for a home. In this analysis, you need to evaluate the market activity of homes similar to yours in your area. The homes sold or listed for sale currently represent the value sellers hope to gain. Typically, the listings that have expired are of either poorly marketed or overpriced homes. You can hire an agent who will prepare a competitive market analysis for your home on the basis of the most current market information. You can thus set up the proper list price for your home.

MARKET PLAN-

For many of us, a home is the largest asset. It is not something we put on sale daily. As a property is slightly complex to market, you need to be well organized. You need a marketing plan to organize the process. Depending on your needs, your agent will prepare a personalized plan for you. It will contain all activities proposed to market your home including online promotion, mailings to probable buyers in your area, MLS services, etc.

·         Pay for an appraisal- The simplest way to find out your home's value is to pay for an appraisal, and set a price of your home close to this price. You can get a by-unit comparison appraisal to similar property in your neighborhood. It will cost you money. However, you can have in writing a professional appraisal on your home that can be displayed to potential buyers. This can be an added advantage. Look for a certified appraiser who can provide an appraisal establishing the number of construction quality, rooms, square footage and size, etc. After reviewing the recent comparable sales; the appraiser will determine the estimated value of the home.

·         Real estate agents- You can consult 3-4 real estate agents in your area. While interviewing a realtor, talk to an agent directly. Tell him clearly if you are planning to sell your home yourself. Remember, an agent's services are free to the buyer.

·         Use the Internet- With technological advancement, you can now avail a wealth of information quickly. You can now use it for calculating your home’s market value. While using this method, make reasonable comparisons to avoid wrong estimates.

·         Understand the changes and evaluate the Housing Market-You can observe pricing trends to determine the market value of your home. Remember, the housing market will not always give the most precise impression. So, you need to gather the details and evaluate the housing market to determine the price.

You can employ one or a multiple of the above mentioned methods to formulate a reasonably accurate price range for your home. This will help you determine the value of your home.


© Global Realty & Investment Corp 

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