Wondering How Much Your Home Will Sell For? Here's How the Price Is Determined
Home sellers generally don't set a price without enlisting the expertise of a professional real estate agent. But they can still benefit from a better understanding of the home pricing process.
Before you put your home on the market, learn how real estate agents calculate an asking price that will secure a satisfactory selling price for their clients.
Real Estate Comps
You can’t get full monetary value on the open market without determining an appropriate asking price for your home. This process generally begins with an assessment of real estate comps.
Short for “comparables,” comps are the recently sold properties in your area that are comparable to the one that you want to sell. Beyond location, a good comp analysis will take a broad spectrum of criteria into account, including the size, age, condition and architectural style of the property.
Examining the selling prices of relevant comps is one of the best ways to calculate the overall value of your home and list a reasonable asking price.
Market Value vs. Assessed Value
Home sellers should also be aware that there are two primary types of valuation in the real estate world: market and assessed. Typically based on comp analysis and on-site appraisals, the market value of your home is an estimation of how much a buyer would be willing to pay for your home under current market conditions. Assessed value, by contrast, is used to determine property taxation. Because professionals calculate assessed value as a percentage of market value, it generally comes in at a significantly lower figure.
Asking Price vs. Selling Price
Of course, even if you take great pains to set the perfect asking price for your home, there is no guarantee that you will get that exact price from a buyer. From stock market crashes to unexpected bidding wars, countless general economic and housing market forces can cause your home’s selling price to increase or decrease considerably. To get optimum value out of your home, you should complete detailed preparations before asking an agent to put it on the market.
Enlisting the Help of a Top Real Estate Agent
From setting asking prices to closing final sales, a good real estate agent will do everything possible to get the right amount of money for your home. To find only the top-performing agents in your area, contact Best Agent Today.