How would you place a value on your current home; What a homebuyer is willing to pay, what a professional appraiser would say, or your personal opinion of what it is worth, there will always be a difference as there are ways of perceiving a home’s value. Trying to price your home, before putting it on the market, often is a blending of multiple theories to place a value. We will try here, to present how these three opinions differ and how they are mostly in line with today’s selling and buying of Columbus homes for sale.
Buyer’s opinion of worth.
Regardless of your local real estate market conditions, the buyer’s mindset is one of getting into their dream home with as little money expenditure as possible and a hope that the home will pass muster with their lender. The buyer is placed in a much tougher position with their lender when home inventories are low, there is a greater competition for houses and offers may require more than the appraisal worth. The buyer must choose to move on or place more of their own money to realize a successful purchase.
For argument sake, just about all appraised assessments use currently listed homes in your area, but a heavier weight is placed on the sold listings statistics for the same area; many appraisals look back 6 to 12 months. Since it is not possible to find exact matches for your property, there will be adjustments to your home’s value, either up or down, when it is compared to “Solds” by size, condition, amenities, location, and design.
Mortgage lenders accept the market value, made by an appraiser, in deciding how much to lend a home buyer. This value is generally a percentage of the appraised value or, if the price is lower than the appraisal, it has received. Note, most buyers need a mortgage to get into a home so the appraised amount is very consequential to your sale.
Your personal opinion.
You may look at your home on a more personal level: the price you paid, all the improvements you’ve made, and your perception of what your home is compared to the others on your street; this is a demonstrative look. This look may often collide with what prospective buyers feel the home is worth to them. Remember, a buyer has yet to put their selves into your home with any emotional attachment. When you find a great distance of what you personally believe the value is and what buyers are willing to pay, you may decide not to sell, but when the figures are close, there is more possibility for a sale.
Considering these opinions of worth, the home seller needs to prepare first by understanding where the value of homes for sale materializes from. This brings a lot of questioning about one’s home, is its condition ready for the market? What is the current real estate market in my area like, what should I/we be giving the greatest attention to before we put our property up for sale, and where will we find good seller representation at? These, and dozens more, questions are inherent for all home sellers. There are answers easily available whether online, from friends and family, but most important, from the professional Realtor.
Call on The Anders Team, they offer free market demographics and statistics. Get a personal and confidential comparative market analysis of your home using the same comparables that an appraiser might use. Here is another tool (click to review what the current market, in your area of homes for sale, looks like.)