Beaufort, SC- Mar 18, 2014—One of the most difficult parts of
selling your home occurs before you even place it on the market:
determining its listing price. Coming up with a realistic number can be a
confusing process, as a home is ultimately worth what it is paid for
it. Everything else is really an estimate of value.
Take, for example, a hot seller’s
market when demand for housing is high but the inventory of available
homes for sale is low. During this time, homes can sell above and beyond
the asking price as buyers bid up the price. The fair market value, or
worth, is established when “a meeting of the minds” between the buyer
and the seller takes place.
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Article Presented by: Annette Bryant
(843) 986-7343 |
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So how do you decide what your home is worth? “A comparative market
analysis and an appraisal are the two most common and reliable ways to
determine a home's value,” explains Connie Ray, President/Owner of
Coldwell Banker Platinum Partners.
Your real estate agent can provide a comparative market analysis, an
informal estimate of value based on the recent selling price of similar
neighborhood properties. “Reviewing comparable homes that have sold
within the past year along with the listing, or asking, price on current
homes for sale should prevent you from over or under pricing,” suggests
Ray.
In order to find the appraisal price, a certified appraiser is
needed. After visiting the home to check such things as the number of
rooms, improvements, size and square footage, construction quality, and
the condition of the neighborhood, the appraiser then reviews recent
comparable sales to determine the estimated value of the home.
However, it is often the buyer—not the listing party—who brings in
the appraiser. Lenders normally require an appraisal – which run between
$200 to $300 – before they will approve a mortgage loan. This protects
the lender by ensuring the home is worth the money you want to borrow.
“You also can check recent sales in public records, through private
firms, and on the Internet to help you determine a home’s potential
worth,” notes Ray.
Below are some other points you will have to understand when finding a listing price:
List price vs. sales price
You probably hear both terms being tossed around, and it may be
causing some confusion. The list price is a seller's advertised price,
or asking price, for a home. It is a rough estimate of what the seller
wants to complete a home sale. A seller can price high, low – which does
not happen very often – or very close to what they hope to get. “A good
way to determine if the list price is a fair one is to look at the
sales prices of similar homes that have recently sold in the area,”
notes Ray.
The sales price is the actual amount a home sells for.
What about appraised value and market value?
“A certified appraiser who is trained to provide the estimated value
of a home determines its appraised value,” Ray explains. The appraised
value is based on comparable sales, the condition of the property, and
several other factors.
Market value is the price the house will bring at a given point in
time, once the buyer and seller establish a “meeting of the minds” on
price.
For more information on buying in a low inventory market, please
contact Coldwell Banker Platinum Partners at Connie.F.Ray@mycbpp.com,
912-352-1222, or Coldwell Banker Platinum Partners.
Coldwell Banker Platinum Partners, established in 1995, is a
full-service real estate firm with more than 100 sales agents
strategically dispersed among its office locations spanning from
Beaufort, South Carolina, through the greater Savannah area to St.
Simons Island, Georgia. The company was founded by Connie Farmer Ray,
president and CEO of Coldwell Banker Platinum Partners. In addition to
listing and selling residential real estate, Coldwell Banker Platinum
Partners other divisions include commercial real estate, property
management, relocation services, a real estate school, mortgage lending,
and a publishing/media division. The companys corporate offices are
located at 6349 Abercorn St., Savannah, Georgia. For more information
visit their Web site at www.MyCbpp.com or call 800.505.8111.