Your Home's Real Value
You are ready to put your home up for sale. You have been working on the landscaping and have laid down some new carpet. You can say with confidence it is one of the nicest homes in the neighborhood. With the upgrades and market, you are 100% sure this home will sell itself...right?!?
Here is the nuts and bolts of selling your home. Your house isn’t worth what you paid for it – or what you owe on it. When coming up with the price to sell your home, if you set a price based on money spent you want to recoup or based only on how much money you want in your pocket. You may be walking into frustrations.
Sure, all of the updates you made play a role in determining the overall value of your home, but the impact is small when determining the true value of your home.
WHAT IS MARKET VALUE?
Market value is the price a home will sell within a reasonable amount of time. That time period is totally up to the current market is doing.
If you’re thinking about selling your home, make sure you find out what you can realistically sell it for beforehand. To do this, talk to a real estate agent. They can show you “comps” – comparable homes in your area with similar square footage, number of rooms, and updated features. This will help you understand the range in which your home is most likely to sell in today’s market. The comps aren’t maybe figures. They are the real numbers.
HOW IS MARKET VALUE DETERMINED?
As a seller, you are the one who will ultimately determine the price. Just remember, a buyer is the one who will determine if the price is correct. There are, of course, things you can do to influence buyers and help them see more value in your home, but at the end of the day your home is only worth what the buyer will pay for it.
Besides the condition of your house, your neighborhood is one of the most important things to look at when determining market value. Market value is really a street by street number. If homes aren’t selling fast in your neighborhood you need to price accordingly. You must be aware of your home surroundings and not just focus on the condition of the house alone.
THE BOTTOM LINE
Your home has a value that is totally determined by the home seller. That value starts at the current market but will end at what a buyer is willing to pay. There will be basic things you need to take into account such as how much money you need to pay off your current mortgage. But you must make sure the home sells and that it appraises.