How Much is My Home Worth?
For most of us, our home is our single largest financial asset. Let’s talk about how we can discover how much that asset is worth.
Confused about what you might be able to get if you sell your house? Is your tax assessed value accurate? What about a bank appraisal? And what the heck is a CMA? Oh, and what’s this “Zestimate” all about? We go through all of this and more as we tell you how much your home may be worth when selling it on the market.
Should I sell my home for my Tax Assessed value?
Let’s face it, for most of us, the only indication of the value of our home on a yearly basis is that piece of paper which also tells us how much tax we need to pay. The tax assessed value, or the value of your property by which your municipalities basis your property tax payment, is an approximation of your home’s value. It may not be a true reflection of what your home is actually worth. Why? Municipal assessors have no idea if you have renovated, kept on top of on-going maintenance. They do know general market trends which gets them close, but when it comes to pricing a home to sell, the details matter. So can you sell your home for your tax assessed value? Perhaps, but you may want to look at other ways to value your property first!
Should I sell my home for my Bank Appraised home value?
If it’s good enough for the bank, it should be good enough for a buyer to pay right? Wrong? A bank appraisal can be very different than the price buyers are willing to pay for your home. Why? Bank appraisals are in general, conservative in practice. While the appraisers are extremely knowledgeable and apply best practice when it comes to valuation, they also serve the bank who is likely lending a lot of money for that asset. Put another way, the bank doesn’t want to lend more money than a home is worth and therefore appraisals can be lower than the price a buyer will pay. It’s not always the case but it does happen.
Are Zillow “Zestimates” accurate?
A relatively new player to the “how much is my home worth” world is Zillow with their online “Zestimates”. As the name suggests, these are Zillow-Estimates of your home’s value and may not be indicative of your specific situation. Just like the municipal assessors, Zillow has a hard time knowing if you or your neighbors have done renovations, kept up your home and more. That said, they can be good to get you in the right ballpark depending on where you live.
How much can I sell my home for?
As a real estate agent, our job is to market your home in such a way that it attracts the highest number of potential buyers and is priced relative to the competition and historical sales. This is why we, as the majority of other agents, will do what is called a CMA or Comparable Market Analysis when attempting to develop a range of prices that your home may sell for on the open market. We will not tell you one number, we will rather tell you a range of prices and discuss how each relates to recent sales in your area as well as current listings (your potential competition) in the market. From this we can together formulate a pricing strategy that best serves your timeline.
Technology is great. Having the right people is better.
Let Us Help You Sell Your Home
Your home is probably your single most valuable asset. That is why we always go the extra mile in providing you with the highest level of real estate service that will make us your preferred real estate professional.
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