Property valuation can help and we'll explain a little bit about it in a minute, but eventually it all comes down to how much a buyer is willing to pay at that particular time.
However, in order to get that beginning price steps have to be taken which include many variables associated with surrounding homes, property tax, zoning ordinances, extra additions, equity, any liens, and of course, location, location, location.
The easiest way to understand this process is to backtrack to when you purchased your home and remember all the things you researched in order to purchase it.
What Is Property Valuation?
Is a way for you to find the market value of your home. An opinion is formed from an appraiser based on many of the factors we discussed previously.
Since no two properties are ever the same, methods must be used to estimate the value which is why having more then one appraisal is often recommended in the real estate industry.
Basically, it gives you a common ground to start with if you plan on selling your home. The process will allow others to do their own appraisals of the surrounding area and come to terms as to whether or not your asking price is too high.
It also gives buyers the opportunity to get a great deal on home if someone has lowered the price under what it's worth.
The Biggest Question To Ask Yourself
So let's say you go out do get a property valuation done through various research, put it all together and come up with a number. A place you have created a life for yourself and your loved ones for several years is now in the process of possibly being put up for sale.
Then you ask yourself the biggest question of all, "How much is my home worth to me?"
Is the price you are asking for going to enhance the next step in your life? Or is it going to set you back another five or ten years?
You have to remember when getting a property valuation it is based upon an opinion. That's it.
Even though it will be crucial to find out how much you will likely get out of selling your home and is definitely recommend to do, the final decision will be in your hands.
Clearly the valuation of your property is a vital constituent of the sale; this is especially true in today's climate. The automated systems present at the moment may not be perfect but do make a brilliant starting point for an assessment.
While the human element cannot be forgotten, as this technology becomes more advanced, sellers will increasingly be making their own estimates. Whether these will be worthwhile and accurate remains to be seen.
Some people try to figure out what their home is worth by adding the annual appreciation average of homes in their city. They figure if they paid $200,000 for it 5 years ago and the average appreciation has been 8% over that period than their house is worth $293,865. Is this correct? Maybe.
Others will try to base their house value on what properties in their neighborhood are selling for. They find houses that look similar from the outside and are approximately the same size and base their value on what it sold for. Their neighbors house which was an approximately 2000 square feet ranch sold for $315,000. Figuring their house is about the same size, age, and style- they should get $316,000. After all it is 2 months later! Is this correct? Maybe.
Maybe there is a % to add to the tax assessment. Or an online program to enter all of your homes data and out comes a price.
As it turns out there is no such magic pill. Every thing must be taken into account when figuring out your homes market value.
What are comparable homes in your neighborhood selling for? Are they comparable in size and age only? Do these comparable homes have tile floors and maple cabinets, where you have vinyl and oak? Or do you have gleaming wood floors and an exposed lower level where they do not have these desirable features? Is your house on a cul-de-sac where the comparable homes are situated on busy streets?
Are interest rates higher or lower than they were before? Is it the middle of summer, the beginning of Spring, or the dead of winter. Is your 3 year old home going to be competing with brand new homes? Maybe even in the same subdivision. Has a new company just came to town along with 500 of their employees who need homes or condos in your area. Has the major employer in your area just announced that they are relocating to a different city?
This is just quick example of things that can affect your homes resale value. In order to answer the question "How Much is My Home Worth?"- Consult a realtor.
Both Ricardo D Argence & John Schroeder are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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John Schroeder has sinced written about articles on various topics from . John Schroeder is a realtor with Re/Max Preferred Realtors in Madison, WI. His blog contains information on real estate and community info on Madison and it's surrounding communities at. John Schroeder's top article . to your Favourites.