My Neighbors just sold their house so mine should be worth at least that amount.
Unless your neighbor’s house is identical to yours and is next door, the difference between the two houses could be $1,000s. Size, condition, age and location are just a few of the items that have to be factored in when determining a Fair Market Value for a property. Very seldom are two houses similar enough that they both generate the price.
I checked on the Internet and they valued my house at that amount.
The internet is a great place to start getting an idea of what a property could be worth. Many on line services uses what is called an Automated Valuation Method (AVM) to determine their values and may included hundreds of dissimilar properties to develop their values. For example, they may use a property with the same square footage that is 20 years older and is located next to a freeway. In a recent report, and internet provider developed a property’s value of $243,694 while a BPO projected a price of $261,381. That’s a difference of over $17,000.
I recently saw that homes in Jefferson County have increase in value over the last year.
A few times a year the local media will report that housing in the area have increased or decreased in value over a certain period of time. This is usually the median or average change in price that has occurred over a period of time, usually a year. This means that some homes have increased more and some less. The only value change that should be considered is the one for your neighborhood.
The house next door sold a year ago for an amount that is less than what mine is worth today.
A year is a life time in developing a Fair Market Value. Most lenders ordering a BPO restrict the sold period to the last six months or even reduce the period to the pass three months. Depending what is happening in a local market dictates the activity period that should be used.
I called a Real Estate Agent and they said houses in my area are worth that amount
If you are asking an agent about the value of a property you should also ask them how they arrived at their value and what comparable homes they used. Depending on the location of a property, homes over a half mile away or in a different subdivision could have no relevance to your property.
I can price it for whatever I want because buyers are always going to offer less.
This is one the biggest mistake that homeowners make it developing a price for their home. As the Pricing Pyramid illustrates, a home listed at its Fair Market Value will attract 60% of potential buyers while a home prices at only 10% above market will only attract half that amount. The first 21 days that a property is on the market is the most important in attracting buyers. After that, it becomes a stale property and attracts less interest.
I have heard that I can save money if I sell my home myself without a Realtor.
Whether you’re trying to save money or simply want greater control over the process, selling your home without a real estate agent is possible and is done all the time; however, be aware that it can take serious time and knowledge of the market to do it successfully while avoiding costly mistakes. Many surveys has discovered that homeowners selling their home on their own actual may lose money because of the lack of advertising, negotiating and staging experience. LEARN MORE
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