A price that is too high can hamstring the sale of an otherwise perfect house, poisoning its appeal to knowledgeable, qualified buyers. On the other hand, a house that is priced too low will siphon the profit margin, creating painful disappointment at the closing table. But because each home offers unique features and situations, arriving at the best possible price can be exceedingly difficult. If you are preparing to sell your home and worried about pricing it to attract maximum buyer interest without giving away the profit margin, the following information is sure to help.
Determining market value through the CMA process performed by the listing agent
One of the easiest ways to get a good idea of the actual value of a home is to ask an experienced listing agent to do a comparative market analysis (CMA) on the home before putting it on the market. Although a CMA is not a formal appraisal, real estate agents routinely utilize them to compare a home to other recently listed or sold homes in the immediate area and determine a price range when listing a home for sale. Since most listing agents include a CMA as part of the listing process for which their commission is earned, sellers typically do not pay an additional fee for this service.
Utilizing a licensed property appraisal to determine market value
Property appraisals performed by a properly certified real estate appraiser are routinely performed in real estate sales transactions to satisfy the lender's requirement that the value of the home will cover the amount of the mortgage that will be placed on it. While this information is important to the overall purchase process, it is not necessarily helpful for the seller who is trying to set a price before listing their home.
The good news, however, is that homeowners can hire a professional real estate appraiser to do a market value appraisal for their home well before the listing date. By focusing on actual market value and formally comparing the home to similar recent sales and listings in the area, sellers will be able to easily see the correct price range for their home.
In addition, these detailed appraisals may have helpful notations about specific differences and conditions between the home being appraised and the comps, which can be helpful in guiding sellers to make changes or improvements that might add to the value of their home.
For more information or specific questions regarding the cost of market value real estate appraisals, homeowners should speak with a properly licensed real estate appraiser in their area before selecting a price for their home.Share
1 February 2018
About a year ago, I realized that there were some serious issues with our home. I could tell that we needed to do something to upgrade our residence, so we started looking for a different property. I was able to find a really nice real estate agent who could help, and they worked hard to pair us with the perfect home for our budget and lifestyle. Now I can honestly say that I love my home, and I couldn't have chosen a better one on my own. Check out this blog for great information on improving real estate holdings and finding a better home.