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Listing Your Home with
an Agent?
Not Without a Home Valuation Report!
So you’ve decided to sell your home. Many people assume that contacting
a real estate agent should be the first step. Think again. Every
year, people selling their homes make this common mistake only
to find out too late in the game that they have listed their home
at a price that is either too high or too low. Choosing the right
agent to sell your home is obviously an important decision, but
first things first, it’s important to know what your home
is really worth. Not knowing the value of a home prior to putting
it on the market can cost a seller thousands of dollars, and unfortunately,
too many people don’t realize this until the damage has
already been done.
The reasons for wanting to find out what your home is worth prior to
listing your property on the market are numerous. Some real estate agents
are more familiar with market values than others. If the agent you are
working with lists your home at too high of a price, your property might
be on the market for a long time. For many sellers, time is something
that they can’t afford to lose. On the other hand, if you have an
agent that lists your home below market value, it may sell fast but will
it sell for what it’s worth? If you’re not in a rush to sell,
pricing a home below market value can cause you to throw away thousands
of dollars. An educated seller will ultimately save thousands of dollars
by doing a little homework.
You never want your real estate agent to have the sole decision when
it comes to the price you will be asking for your home. You want to make
sure that you play a crucial part in that decision. In order to bring
your input to the table, you’re going to need to know what your
home is worth. Thinking that’s easier said than done? Many sellers
are surprised to discover that finding out the market value of their home
is a lot easier than one may think.
Until recently, getting an idea of what your home was worth meant spending
$300 or more for a traditional home appraisal. The process could
take a week or more, and getting the results of the appraisal
could take even longer. Thanks to the Internet, that’s all
changed. More and more home sellers are turning to online home
valuations, actually called AVM reports (Automated Valuation Models),
to get an idea of where their property value stands. An AVM is
a sophisticated technology report, the product of an automated
valuation analysis, and computer decision logic combined to provide
a logical calculated estimate of a probable selling price of a
residential property. These reports assume a subject property
is in average condition for the neighborhood with no substantial
economic improvements or deficiencies to any other typical home
in the neighborhood. An AVM pulls public records, MLS data, and
other valuable trending information and reports to help determine
the value of a home without having a live person physically appraise
the property. By combining the selling prices of comparable homes
in the area, the AVM is able to determine an estimate of a property’s
fair market value.
Unlike conventional appraisals, home valuation reports allow you to get
an idea of what your home is worth instantly. Instead of spending $300
or more, now you can spend under $30 and get your valuation in less than
a minute. Some onloine appraiser firms will provide you (for a low cost)
a full valuation report that includes comparable sales of what
other homes in your neighborhood have sold for. This tool can be extremely
useful when determining what price you should ask for your home when it
goes on the for-sale-by-owner A AHREF="http://fsbo.us/">FSBO market.
By ordering one of these online home valuation reports, you’ll be armed
with local knowledge that will help you when it’s time to list your
home for sale. With an AVM report you’ll have a great tool to assist
you or your real estate agent in determining a listing price that best
serves your needs.
While the automated valuation process is considerably accurate,
it's important to remember that no system is flawless. If you
live in an extremely rural area, the system might not be able
to pull enough information to provide you with an AVM. The AVM
also won’t take certain aspects, such as excess wear, into
consideration; nor will it figure in a number of high-end upgrades.
If your property is distressed, you might want to take the amount
of estimated repairs and deduct it from the value you’re
given in your home evaluation report. In situations like this
a home valuation report might not be an exact science; it is,
however, a good starting point when determining asking price.
Since the sale of your home is probably one of the largest transactions
you’ll ever be involved in, making sure that you approach
the task in an informed, educated manner is essential. A home
evaluation report isn’t just an estimate of your home’s
fair-market value; it’s a critical and first step of the
home-selling process. By Jeff Hoerman