What is my home worth?
This is a question we receive daily in our business and the right answer is, "in whose opinion?"
Ultimately, it is the Buyer, the Seller, and the Appraiser that determine the value--what is one willing to pay, the other willing to accept, and the bank willing to loan against? However, coupled with that are other valuable considerations that aren't reflected in the recorded sale price, such as Seller Concessions and repairs. I'm of the opinion, that everyone should have a good idea of their Market Value, just as they know the value of their 401K. Computer-generated values are available on Zillow and Trulia, however the owner of this company (they recently merged) even admits they can be as much as 10% off the value. Real estate is local. And when determining value for a future sale, the following must be understood.
The Seller Determines the List Price
After receiving a list of recent comparable sales, and making adjustments for features such as age, size, quality, and condition, a Seller determines the price at which they want to market their home. Receiving reliable information in this regard is a substantial determinant at how successful that Seller will be in reaching their goal of selling. Some factors in the Seller's Pricing Strategy are how quickly they want to sell, how much they owe on their mortgage, and how many repairs they are willing to do. In my years of doing business, I have heard the accusation that a real estate agent "bought" a listing by telling a Seller that their home is worth more than it is. While the practice does exist in the industry, a professional agent will educate their client by using adjustments that are typical of a professional appraiser to eliminate unrealistic expectations and wasted time on the market. When that Seller chooses their Pricing Strategy, the Agent may then determines whether they want to accept the listing. Is it worth the marketing...