So much of your time and effort goes to making some hard-earned cash, which is why it is sometimes difficult to accept that your home, which you bought for $380,000 a couple of years ago, is now worth $350,000. Property values do fluctuate, which is why it is important to determine what's the sounder financial decision that you could make today and opt for that, even if this may mean letting go of a property that's no longer worth as much; otherwise, you may end up holding on to it for as long as you live. Yes, you become emotionally attached to your possessions, but perhaps it's time to let go of your attachment towards the initial price you paid when you bought your home a few years back. You have to learn to look at the market with a more objective eye because, today, real estate prices are generally on a decline because of the current economy's volatility.
1Appraise Your Home's Current Value
Determining the current value of your property may entail obtaining records of recent and even past property sales in your area, but an easier way to do this is by contacting a reliable local real estate agent. It's best to get in touch with one who has a lot of experience because this person's ideas and suggestions regarding the real estate market in your region are more on point and current. Inform him that you are seriously thinking about selling your house and perhaps, make a request for a free appraisal.
2Get Assistance From A Real Estate Agent
One huge advantage of working with a real estate professional is that he has access to MLS or Multiple Listing Service, which is responsible for exposure and making 95% of property sales all across the country. Through MLS, an agent can provide you with helpful information, such as how much certain properties that more or less have the same value as yours sold. It also includes other information, like what added facilities were preferred by buyers, including fireplaces, pools, HVAC (heating, ventilation, and air conditioning) systems, and also the number of bathrooms and bedrooms. You are free to check out the list, which will help you in determining the average. All in all, such will aid you in coming up with an estimate regarding how much you could expect from selling your house.
3Look Into Comparable Sales
It is possible to ask your agent to get you some comparable sales within your region, but you might encounter some problems with time. To explain, perhaps very few sales have been made during the past few months, or maybe there have even been zero sales. As time passes, property values may continue to go down, but you can still come up with a decent estimate by looking at the median sales price of the properties in your region, as this will give you an idea about the average value of all sales made. Compute for the percentage difference between six months ago and the current value to discover the level of property depreciation. If need be, ask your agent for assistance.
4Consider Comparability Limitations
It is a fact that no two properties possess exactly the same features. If you want to have a better idea about how similar a particular property is to yours, the best thing that you can do is to check out that property personally. Although there may be photos on the Internet, you'll obtain more information regarding the overall condition of a property, once you see it with your own eyes.
By personally checking out a property, you may even learn about other issues that affect property value, like an unsafe or noisy neighborhood and the presence of nearby buildings or houses that are no longer in good condition. When you take a look at a particular place yourself, you'll also be able to assess whether or not the landscape needs work. As you compare the condition of a specific property to yours, you can make adjustments to the estimate that you've come up with for your own property.
5Be Ready To Make Price Adjustments
As mentioned, a good way to come up with a more accurate estimate regarding the price of a property to be sold is to evaluate comparables, which is best done with the assistance of a real estate agent. After thoroughly examining comparables, you can adjust the price of your property, lowering or increasing the amount based on the data gathered. Nevertheless, the property's value is finally determined only when an interested buyer actually purchases it.
6Try Other Ways To Assess Property Value
Aside from the tips mentioned above, there are more ways to evaluate the value of properties within your area. For example, if there are open houses nearby, you can check these out so that you will be able to observe the condition of the properties there and discover the asking price of the seller. But, the issue here is that you'll only know how much the seller is asking for, and you probably won't really know how much a certain property will actually sell for. It is possible to employ a reliable appraiser, but this can be quite costly; it's better to spend your money on marketing your home. Also, most appraisers just check the comparable properties, and you can readily do this on your own.
It is crucial to value your home according to facts instead of personal opinion. Actual data, not emotions or opinions, will support your reasons for settling on a certain price. It is a fact that people do get emotionally attached to their homes, especially if they've been living in the same place for a long time. Still, when the time comes for you to move on, you should learn to let go and to focus on the facts, particularly when it comes to determining the value of your property. Be as honest as possible and compute values using reliable comparables and other essential info, so that you'll come up with a price that's fair and attractive to would-be buyers.