When you enter the real estate market as a buyer or a seller you are going to become a bit of an expert in how buying and selling works in this arena. The first issue everyone is concerned about is a home’s value. What is the property worth? As a prospective seller, you want to make sure the number you attach to your home is realistic and somewhat profitable. However, what you might think your home is worth isn’t always the true number. To get there you’ll have to do some digging. Here’s what you need to know about your home’s true value:
Don’t Trust the Algorithm
Real estate sites have popped up all across the Internet. These sites provide a quick snapshot of all the listings and purported value of the home. But, according to make real estate experts, those estimates are often way off. The problem is that the algorithm they use has to be general and there are just too many variables that go into a specific property that can’t be taken into account by generalization. Those values could be a good starting point but they should be taken with a grain of salt.
Your Neighbor’s Value Might Not Be Your Value
Whenever a home sells in the neighborhood, you’ll know right away what it sold for. That price can become a good tool used by brokers to compare other properties but it’s not the final price. You might not know the truth of your neighbor’s home. Maybe they had some serious work that needed to be done and there were charge backs on the final price. On the other hand, they could have invested in some extensive remodeling which boosted the price.
There is also the issue of square footage and how it is used. In reality, a bathroom is worth more than a bedroom. So, you could have 3 bathrooms in a 2,000 square foot home but only 2 in a 4,000 square foot home. The 3 bathrooms could fetch a higher price.
You Need the Right Realtor
Working with a realtor means you’ll be giving something up in the form of commissions but that might be worth it because it is in the brokers best interest to get you the highest price. That means their commission will go up. But this means picking the right realtor. Don’t rush to use a friend or family member who is in the business without finding out their statistics for the last 12 months. Experience matters and that should be proven with results. That’s how you’ll get the most value for your home.