If you are planning on selling your house, it may be a good idea to find out what the market value is. This guide will show you the seven things you’ll want to consider. This will give you a good idea of what price you’ll want to shoot for whenever it’s time to put it on the market.
At this point, you’ll want to find a realtor that will help you get the job done. To find one you can trust, go to Teifke Real Estate and speak to someone who will work with you from start to finish. Now, let’s dive right in and talk more about what you’ll need to do.
Find online valuation tools that work best
First and foremost, you’ll want to use online tools that will give you data on the value of the homes in your neighborhood. You will be able to find out which properties were sold within a certain time frame and how much the price was.
The idea here is that you want to consider setting the price within the average range. If you go too high, there won’t be any interested buyers. Plus, you’ll be stuck with the burden of having to slash the price repeatedly, which is time consuming and costly.
See a realtor about a comparative market analysis
This is one other tool you’ll need to make the determination of how valuable your property is (and the ones surrounding it). To do this, you’ll want to go to a realtor that will have access to this information. The good news is that they can be accessed for little to no fee.
So make sure that you are able to get one and look it over for as long as you can. This will help you make a decision on what price you want to hone in on. Meanwhile, it could also mean determining which price may be your floor (should you get bids that are lower than the intended price).
Find out the property tax information
From a tax angle, you’ll want to find out how valuable your home is. In plain English, the more valuable your property, the more you pay in property taxes. That’s how it works.
You can be able to access this kind of information through your local government website. Otherwise, talk to your municipal or county auditor. They may have hard copies of this information and can let you know of any changes in the tax rate from recent years.
Have it appraised
You have the option of hiring a professional appraiser. At this point, you’ll want to appraise the house so it will be easier for the future buyer to be approved for a mortgage. Many lenders will need that kind of information before any action is taken.
Even though this is a necessary thing to do, almost one third of the houses had their values determined by an appraisal. As part of the process, the appraiser will take into account the following:
- Market: The location of the home including the neighborhood, city, and region.
- Property: The characteristics of the home. This will include the land itself and the improvements
- Properties to compare: This includes nearby properties and the prices they were sold at the time. This also includes the number of current vacancies, listings, value depreciation, and more.
Find an FHFA House Price Index Calculator
The Federal Housing Financing Agency has a house price index calculator. What this does is that it can track the changes in value from one sale to the last one before that. It’s looking for any value fluctuation that has occurred in any market.
The value overall may have changed over the course of many years. So it could play a factor in the price you want to decide one. Also, it will provide you with information that will be helpful in securing a mortgage.
The calculator will have costs that are not adjusted for inflation or for seasonal reasons. So it would make sense to consider using this tool whenever you want to find in-depth information.
Find comparable properties
Comparable properties will be found on various websites where MLS listings are found. This can help you find the prices of any sales and compare them with the rest of the neighborhood. If there are no recent sales, the listing price may be the next best option (but may not be realistic).
Even though comparable properties are a good tool, it may be a challenge to make the determination in terms of price. Because you may end up doing a bit more math than you thought.
What to do if the price goes up or down?
After your house is appraised and you go through the motions, the value may either go up or down. So it’s important to make preparations. If the home value goes up, you may want to sell the home sooner rather than later. You may have the option to make some renovations to increase it more.
If the value does go down, it can be due to several factors. This can include but not be limited to the following:
- Age
- Size
- Condition
- Neighborhood/location
- Market status
- Economy
Keep in mind that these are examples of what may be bringing it down. Most of these factors will be outside of your control. A downturn may point to signs that now may not be the right time to sell.
If the value continues to decrease, you can still sell. But you may risk selling it at a lower price point than you would have gone for if the market conditions were better.
Final Thoughts
Selling your home can be a challenge. So make sure you determine the market value accurately so you can make a decision to sell or wait until conditions improve. We hope these factors will be your guideposts in your journey towards selling your house for as much as you want.
