How to Determine If Your House Is Priced Correctly to Sell
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One of the biggest factors that determine how long your home sits on the market is price. Many homeowners make the common mistake of overpricing their homes. In order to determine the right listing price for your home, it’s important to understand how pricing works in relation to demand, competition, and market conditions.
In this article, we’ll study how determine the value of a home, whether your home is priced fairly, and how to find the right real estate agent to get your home sold quickly.
Home Appraisals: How They Work & What You Should Know
A home is an unbiased estimate of the true (or fair market) value of what a home is worth. All lenders order an appraisal during the mortgage loan process so that there is an objective way to assess the home’s market value and ensure that the amount being asked for by the home seller isn’t higher than the home’s actual worth.
How Do Appraisers Determine Value?
Appraisers look at recent sales of similar properties in the same neighborhood to come up with a fair market value estimate. They also take into account things like the condition of the property, square footage, lot size, and any special features or amenities that might add value.
The most important thing to remember is that an appraisal is not the same as a home inspection. A home inspection is a visual examination of the property to look for any major repair or maintenance issues. An appraisal is a way to determine the fair market value of the property.
If you’re thinking of selling your home, it’s a good idea to order a home appraisal before putting your house on the market. That way, you’ll have a good idea of what your home is actually worth and can price it accordingly.
It’s also a good idea to get a second opinion by having another appraiser come out to assess the value of your home. This is especially important if you think the first appraiser might have missed something or made a mistake.
3 Ways to Tell if Your Home is Priced Correctly
Now that you understand a bit more about how appraisals work, you might be wondering if your home is priced correctly. Here are three key ways to tell:
1. Comparing Your Home’s Appraisal to Similar Properties
Once you have your home’s appraisal in hand, it’s time to do some research and find out what other similar properties in your area are selling for. The best way to do this is by looking at recent sales of comparable properties (also called “comps”).
Start by pulling up recent sale listings for homes in your neighborhood that are similar in size, condition, and features to your own home. Take a look at the listing price as well as the final sale price of each property. This will give you a good idea of what buyers are actually willing to pay for a home like yours in your area.
It’s also a good idea to compare your home’s appraisal to the comps yourself. This will help you spot any potential mistakes or errors in the appraisal report.
If you find that your home is appraised significantly higher than similar properties in your area, it could be a red flag that the appraiser made a mistake or missed something important. In this case, it’s a good idea to get a second opinion from another appraiser.
On the other hand, if your home is appraised lower than similar properties, it could mean that the market value of your home has decreased since you purchased it or that the appraiser missed something important. Either way, it’s a good idea to talk to a real estate agent to get their professional opinion on your home’s value before making any decisions.
2. Checking the Property Tax Assessment
Another way to tell if your home is priced correctly is to compare your home’s appraised value to the property tax assessment. The property tax assessment is the value of your home as determined by your local government for the purpose of calculating property taxes.
In most cases, the property tax assessment will be lower than the appraised value of your home. However, if your assessment is significantly lower than your appraisal, it could be a sign that your home is undervalued and you could be paying too much in property taxes.
On the other hand, if your assessment is higher than your appraisal, it could mean that your home is overvalued and you might want to consider appealing your property taxes.
To find out your home’s property tax assessment, you can contact your local office or look up the information online.
3. Asking a Real Estate Agent
If you’re still not sure if your home is priced correctly, the best thing to do is ask a professional. A real estate agent will have a good idea of what homes in your area are selling for and can give you their professional opinion on your home’s value.
When you’re interviewing potential real estate agents, be sure to ask about their experience selling similar properties in your area. You should also ask about the marketing strategies they would use to sell your home and how they would price it in today’s market.
Choosing the right real estate agent is an important decision, so be sure to take your time and interview a few different agents before making your final choice.
With FastExpert, finding the best real estate agent in your area is easy. Simply enter your zip code and we’ll match you with the top agents in your neighborhood. We’ll also provide you with each agent’s contact information, customer reviews, and past sales data.
