Preparing to Sell
If you are getting ready to sell your house, it’s important for you to know how property values are determined. This way, you’ll be able to estimate your own, so you’ll have an asking price ready for the real estate agent you choose. In addition, it will give you a better understanding of what you can and can’t expect, given the current real estate market. Many times sellers overestimate property values, typically because they have attachments to the home.
What Information is Used?
You’re going to be hearing several different amounts, and you’ll likely receive more than one offer as well. Therefore, being able to determine the factors that affect your property’s market value is important. The fact of the matter is, public records are a big source of data for the information used in determining a home’s value. You can do your own comparative market analysis easy enough, just by checking out comparable properties in the area and what they sold for. This information is the majority of what’s used in determining the current market value of a home.
Your Current Market Value
There are plenty of different methods to determine the fair market value of your home. One way is to look at a current property tax bill. When your property taxes are due the Assessor’s Office will put the assessed value of a home on the tax bill. This is usually a little low, but it’s a good rough estimate. Comparable properties, what sold recently and for how much, in the area, you live in. Online valuation tools can help. This is called the automated valuation model and one of these is easy to find online.
Square Footage
Square footage is the other indicator you can use to determine property value. Often, buyers use square feet to determine the value of a home. When you divide the square feet into the asking price, you’ll get the amount per square foot, a trick buyers use to determine the value of a home and whether or not it’s a good value. You can compare with other houses to find out how yours rates.
The Appraised Value – Official Appraisal
At some point, usually, once the buyer puts earnest money down, the lender will put an appraisal contingency in. This is where a professional appraiser will come and do an official appraisal of your house. This is the one that counts, as the appraised value is what the lender will approve, so it’s important.
An appraiser visits the house, and you will have a chance to let them know things that may raise the appraised value. Typically, the appraised value is higher and more accurate than other estimated values, because someone is actually looking at everything.
What Does the Appraiser Look at?
The appraiser usually uses a form abbreviated URAR, or the Uniform Residential Appraisal Report, to evaluate the house in a systematic way. There are 3 main categories:
- STRUCTURE/HOME IMPROVEMENTS – example: building materials, square footage, appliances, heating, and cooling systems, outdoor features, etc., and compares with other houses in the neighborhood. If you have made improvements in any of these areas it will be noted here, as well.
- NEIGHBORHOOD/LOCATION – example: how desirable of a location is your home in, how close to amenities it is, etc.
- SITE – zoning, special hazards (environmental or otherwise), FEMA flood zone, outside characteristics, for example, sidewalks, lights, gutters, etc., and adverse site conditions.
Obviously, there are plenty of additional details, but the appraiser assigns his or her assessed value based on this report.
The Housing Market
The real estate market in normal conditions will also determine the fair market value of a home. Real estate agents are excellent at this and will help determine the fair market value for your property in particular, but it will be based mainly on comparable sales in the area. They will look at recent sales and the sales price of other homes in the neighborhood. They can only use data from properties that have sold recently since home values change often. Real estate investors will estimate market value in a similar manner.
A Cash Buyer Alternative
In case you weren’t aware, there is an alternative to all of this that’s actually much simpler and much faster when you want to sell, to get a free, no-obligation, all-cash offer for your house and sell it at a slightly discounted price for cash money. Our representative will contact you to make an appointment to visit the property in person and will discuss your individual situation with you.
At that time, the buyer will be prepared to make you a cash offer and explain all aspects of his or her pricing. You can either accept our offer or solicit other cash buyers for offers, and if you accept, you could have a completed sale and money in the bank within two weeks!
Benefits of All Cash Sales
Here are some of the perks to accepting a cash offer instead:
- NO appraisals are necessary!
- NO home inspections are needed!
- NO home improvements or repairs are necessary! We buy houses ‘as-is’, in any condition.
- 0 closing costs!
- NO other fees or commissions! In fact, we pay any legal fees or other costs associated with the sale of your house.
- CHOOSE your closing date!
- HAVE CASH WITHIN TWO WEEKS!
Sell Your House Fast – Mississippi
To get started or find out more, fill out the short form on our homepage, right here on this website today! We are cash home buyers built on integrity and reliability, and we care about our clients.
At SellMyHouseFastMS.com, we understand that life is unpredictable. Sometimes things happen unexpectedly, causing financial hardship or sudden relocation. That’s why regardless of your unique situation, we want to help, with a viable solution that benefits all concerned parties. So what are you waiting for? Contact us today!
