The Value Of Your Home, How To Figure Out What It’s Worth.
The value of your home, anything, how do you know what it is worth?
Just Google it, look it up in a book or slider your finger down a row of numbers on a chart? That works for some things like coins, stamps, and anything not fixed to land. Where location does matter, where what is around the home for sale all adds to the rise and fall of value.
What’s my home worth?
That question comes up a lot.
Especially pushing a grocery cart through a food store or when bumping into someone I know filling the wire cart with one squeaky wheel. Even the seller of a home that is relaxed, layed back and not really ready to list it and put it on the market.
Just wondering about what is my home worth today is a common concern.
Curious to know because maybe contemplating a move to another location, a different house. Or because improvements are about to be put into action and worry about is it cheaper to sell and buyer bigger and better/ Or bite the bullet. And make what you already have for a castle new and improved.
In small rural areas, the valuation of a home for sale does not spike so high and down so low. Steady as she goes happens. Things appreciate with inflation but everything is priced pretty down, close to ground. No surprises.
The other question that comes on the heel of what’s my home worth, what is the value of my house is what can I do to make that valuation number go higher?
What can I do to make my home worth more? In any real estate market, there are items added to a house that increase the value. Other areas tackled that are for personal enjoyment but no financial gain on the valuation.
And there are those routine, joys of ownership areas that just need tackling. But you don’t get back the amount invested or more because it is a given your home needs these items repaired and updated to be functional. To please the audience and the bank financing the home, the sticks and bricks have to be up to standards.
So back to the value of your home, how the what is my house worth figure.
Two major things to keep in mind when whatever number is filled in the blank about the listed price to use in marketing. Whatever a real estate agent, broker and the seller do, if the price is too high, if the marketing is weak or non-existent, the property listing won’t sell.
Over priced listings help sell other properties. Period.
A shelf life, been hanging around the market too long causes real estate mold, rot.
And folks start to avoid the listing, thinking there must be ten foot pole marks all over it.
Because it lingers. Days on market, the DOM is a critical metric of real estate and says volumes.
Supply and demand, how many homes like yours are available today? That impacts the value because demand for anything in short supply energizes the price tag. Causes the listing prices to escalate.
Or if there is a glut of just like your homes on the multiple listing service merry go round, then the opposite effect happens. Prices tumble to make the property listings attached to them move.
The condition of the property. If it is priced right, based on a home in good condition and it is not that way during the show and tell marketing, other listings more up to date and that don’t have deferred maintenance shine brighter.
The buyer is looking at doing the improvements you did not. That costs money and time that he might be short of on both counts.
So pricing, considering everything from square footage to number of bays in the garage, the bathroom count, if the kitchen counter top is granite, it all goes into the grinder.
Along with lot size, terrain, view, water frontage and any other feature this property has that another lacks. There are many factors that if ignored, upset the real estate sale process.
Lots of clutter, foul smells, parts of the home for sale that the buyer can not even get into and look at? Wet basements, leaking roof, peeling paint? Is there a quick occupancy or slow as molasses getting out or an unruly tenant making even showings hard because they don’t want to move.
Regardless of whatever condition of the home for sale, the value, worth of it has to reflect the shape it is in.
Excellent, fair, poor. Pricing well with whatever you have is the key to selling well. To getting the best sales price.
Real estate markets run on economic cycles. They behave with periods of appreciation followed by a high point, consolidation, excess inventory, reduced values, a bottom, then a run-up in values again. Typically with low inventory causing values to increase, level off. Until market saturation tilts the scales and here comes adjustment.
The real estate value of your home declines.
There are best times to buy and to sell.
Catch the wave and seeing the market is what a trained real estate professional is for.
Not a west coast site that guesses at a value without ever setting foot in the town or the property itself. So much is missing from the estimate from the ZZZzzzzzzz sleeping portal that misses much and confuses today’s value of your home.
Real estate market values change.
A house appraisal is only valid for six to twelve months because it reflects the current market. Go longer than that year and now that is yesterday’s news. Out of date and the comparable sales, listings used on the original appraisal are out of date too. New ones plugged into the analysis show different results.
There is no bad time to list though because real estate sells year round. Folks get job transfer, die, receive pink slips in pay envelopes, get married and find out more bedrooms are needed year round.
However, no matter at what point of the cycle a property is being sold, pricing is the key to maximizing the seller’s returns.
In up-markets with little inventory and strong demand, realistic pricing can create competitive interest in the property and sometimes push the sales price above the real estate market value. It is never once and done in real estate valuation and pricing.
If the inventory or economic changes happen during the listing period, the price on the property for sale needs to reflect those blips.
If they don’t other homes for sale other than yours will head closer to the real estate closing finish line.
Accurate pricing is a powerful tool to make a house sale happen quicker.
Time is money for the buyer, seller. Motivating a buyer to purchase means attractive pricing or they will look elsewhere to find what they need and can afford. That matches the gotta have, don’t want list they hammer out and consider in their purchasing today.
Buyers who have bought and sold homes know the score. They have lots of information at their finger tips to make educated purchases. The Internet opens up the information needed to help in the decision making buying a home. This market segment has bought and sold and understands the process best.
The first time home buyer is just getting their feet wet. Inching into the market cautiously and low on money and experience.
They have a harder time in hot real estate markets with short supply on those starter homes.
Working together. Sellers with the help of a real estate professional determine home value and ultimately what a property will sell for because sellers are the one’s taking the hit.
Parting with the money to help determine if the purchaser making an offer will be the one to buy the home or not.
You need inventory and you need buyers. The process starts with a listing to sell, something to buy.
If the seller wants too much, over market value, the real estate agent, broker, REALTOR should not take the listing.
It sets the wrong impression or expectation that this home will actually sell for this much. A seller can get angry hearing the real estate value of the home in the current market. And shout “I’m not going to give it away, I don’t have to sell”.
But not sharing the accurate information wastes everyone’s time and causes more high emotion from a listing taken that never could get to the closing table. A listing agent or broker needs to be skilled at pricing.
It is a science and appraisals take time, study of the market that is. Not the one that was or might happen down the road. Taking a higher priced listing to just get it on the market is being less than honest with the seller who thinks here we go. This is what to expect for a sales price.
Buyers are busy, don’t have a lot of time to one by one make offers to see if the seller is serious or joking.
They swoop in on the market values they can afford and the price range that has the best fit for their wallet or purse size. Over priced listings, taking them in the real estate business is known as “buying the listing” It works against a seller’s desire for an efficient quick sale at the best price.
Over priced listings are not realistic.
Sometimes a seller fools himself that he wants to sell but his price does not get him into the ball game, does not reflect that motivation. It is simply unrealistic.
Buyers ignore over priced real estate listings, they are not popular and a waste of time for everyone. Loss of time, money, delay misses out on the opportunity to list, market, sell a home and get on with their life. Both buyers and sellers in the real estate market want to link up. To buy and sell is what is needed. Property listings priced realistically, to make that connection come together and dove tail beautifully is what causes house sales!
207.532.6573 | [email protected] |
MOOERS REALTY 69 North Street Houlton ME 04730