The median sales price for a new home currently stands at $348,200.
According to a report released last month by the Census Bureau, this is the highest seasonally adjusted rate in the housing sector since the year 2015. With more than 764,000 new homes sold by January 2020, it’s agreeable that the housing sector is destined for an upward spiral this year.
Are you planning to sell your home soon? The market is ready for you considering the positive trends in home sales. However, it would be best if you found out the true value of your home beforehand to ensure you get the most out of this deal.
It’s possible to get the best value out of your home sale with proper appraisal tools. Here’re some tips worth considering.
Why Is Valuation Important?
Determining the fair price of your home may be more complicated than you could ever imagine.
Most homeowners assume that the value of a home is based on the original cost of construction, plus or minus a few adjustments. In reality, valuation takes into consideration many other factors before determining the actual fair price of the home.
You may have underestimated the worth of your home, hence creating a gap in the amount of value you’re likely to gain from the sale.
Similarly, you may have overestimated the pricing of your home, a move that may have significant implications on the ability to seal the deal sooner.
Valuation tools help you overcome these challenges.
You’ll get the best buyer for your home at the best price within no time. Here are some of the tips and ways that can ensure you sell that home sooner.
1. Online Valuation Tools
With the internet, nothing is impossible. Are you looking for real estate tools that can help you with your home’s valuation? Online valuation tools present the answer to your predicament.
By simply searching “how much is my house worth?” the Internet will provide dozens of home value estimators, you can rely on for valuation.
Selling a home before the age of technology was tedious and tested homeowners’ patience due to the level of unprecedented delays. In some cases, you could end up selling your home at a throwaway price due to limited valuation information.
Online valuation tools or automated valuation models utilize public records to project the estimated value of your home.
The tools are often managed by lenders and real estate companies who use mathematical models to predict your homes’ estimated value.
You may need to provide documents such as property transfers or deeds of ownership to facilitate the process. Other relevant public records in the process include tax assessment records about the specific property.
The valuation uses a “confidence score” as the metric that shows how close the approximated cost of the house is to the market value.
There are many online valuation tools you can utilize. They include Zillow, Redfin, and Chase.
2. Utilize Comparative Market Analysis
One of the more accurate valuation tools you can utilize is the comparative market analysis or CMA.
The main advantage of CMA is that it’s based on an agent’s valuation of the home vis-à-vis the existing market. Most of the time, real estate agents have the best insights into the house sales market.
Agents conduct appraisal assessments to get the actual value of your home for listing purposes. Most agents recognize that without a high confidence level, getting a favorable listing may be hard. This may complicate the ability to reach an agreement with a buyer.
Most local real estate agents can help with the comparative market analysis process at little or no cost implications on your end. But you may need to have a clearly defined agreement on the scope of the relationship. This eliminates any assumption that the agent automatically becomes your selling agent upon listing unless you expressly make the decision.
3. You Can Rely on the Federal Housing Financing Agency
Selling a house is a big deal. As such, it’s essential to ensure that the most qualified agency undertakes the valuation process.
The FHFA is a critical federal agency with the ability to conduct a scientifically-based approach in the house valuation process.
The FHFA relies on a house price index calculator to offer an accurate assessment of the value of your home. House valuation requires a keen focus on the possible changes in the value of your home from one sale to the next.
With the FHFA index, the final estimation of your home’s value considers all the probable fluctuations, which may affect the final cost of the house.
4. Consider a Professional Appraiser
You may also have the option of hiring an appraiser when undertaking the process of house valuation. Already, 28% of American homeowners use the services of home appraisers when valuing their houses. The appraiser offers a detailed assessment of the house based on your specific needs.
The main advantage of an appraiser is the fact they can offer a valuation of your home for a date in the past or the present.
At times, you may need to backdate the value of your house for a refinance. Such needs are easily attainable when you work with a professional appraiser.
An appraiser assesses your house’s value based on three critical factors.
The first is the market, which may be broad, depending on the target audience. The second aspect is that of property, which includes elements such as home improvement costs.
The third factor that professional appraisers put into consideration is the aspect of comparable properties.
A professional appraiser will assess other sales and listings of similar houses to offer you the best probable home value for your house.
The equivalent analysis puts into consideration the houses with the same features, depreciation dynamics, and estimated pricing before making a final valuation of the home.
5. Consider Comparable Properties
You can decide to go on the fishing expedition yourself. This allows you the opportunity to assess the house sale market from a realistic point of view. The idea of heading to the market guarantees you the chance to find the best possible value for your home.
Over half of American homeowners depend on comparing properties in the home markets to set a price when selling such houses.
Pulling comps save you from the cost you would have to incur when hiring an appraiser. But it would be best if you were extra vigilant on the criteria you use to categorize your house.
You should consider a similar size, location, condition, and likely need for upgrades when deciding on comparable properties.
Can a House Appraisal Be Lower Than Your Expectation?
There are instances where the appraised value turns out lower than you would expect. This situation informs the need to combine more than one valuation tool when assessing the value of your home.
If you realize that the cost provided by the appraiser is lower than your projections, then you can decide to take specific actions.
You can request for the valuation report and conduct an error assessment. This helps you to identify the probable causes for the erroneous valuation.
If you’ve enough grounds to challenge the estimate, you can proceed to request for a reconsideration of value on the specific property.
Buyers may be willing to meet in the middle, in case the valuation process undervalues the property. You may consider this as a feasible option in case you are unsatisfied with the results.
Getting the True Value of Your Home Is All About Valuation and Marketing
The process of valuation for your property is essential. However, it would be best if you also focused on increasing buyer interest.
The more the buyer interest you generate on the house, the higher the final price. This means that while the valuation is important, you also need to focus on assessing the patterns in supply and demand.
Buyer interest and the simultaneous interest generated during the sale of the property can enhance the value of your home.
If you’re wondering, “how do I sell my house fast” you need to combine these valuation tools with an effective digital marketing plan. This will attract more clients and increase the highest bidding price for your house.
Don’t Settle For Less on Your Next House Sale
The process of selling your home depends mainly on the ability to market the property. But for you to ensure that you get the true value of your home, you should consider utilizing the various home valuation tools available to you.
You can either opt for an online valuation or choose to work with an appraiser. Other options at your disposal include the FHFA and the use of comparable property assessment.
Once you figure out the most reliable valuation option, the next step would be to market your house to reach as many buyers as possible.
Digital marketing can be of substantial help to you at this juncture. With a well set out digital marketing strategy and proper home valuation tools, you’ll sell your house sooner.
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