When it comes time to sell your home, whether you’re buying up or down in the market, you’ll have to decide on how much to ask for it based on as much information as you can get. There are a ton of pitfalls involved, since there are thousands of dollars that can be gained or lost, so you have to be careful, take your time, get lots of different sources, and then decide. Here are some tips of deciding the value of your home.
There Is The Internet But Beware
If you go on the internet and just search “The value of my home” you’ll get a good dozen websites that are supposed to give you good advice. These sites are mostly there to provide leads for realtors, mortgage brokers, and other people in the business so they are tainted in various ways. You might see that your home is worth about double what you thought is was, or even triple.
These sites take average sale prices in the neighborhood and run them through a program to arrive at a price. They don’t go look at the home, inside or outside, they really don’t know the exact neighborhood at all, and they can be misleading. They are, however, a great way to start, and you should print out about a half dozen of them and put them in a folder.
Get Estimates From Local Realtors
Most real estate offices have realtors that know the neighborhood, have sold homes there, and can give you a good idea of what your home is worth. However, there are a lot of tricks they can use, they’re taught in books and real estate classes so they’ve been around awhile.
The frist trick is to tell you your home is worth way more than it is in order to get you to list it with them. Then, after it sits on the market for a month, they’ll tell you to lower the price to get it to sell. Either way, they got the listing and make the commission.
The other trick is if they think they have you as an uninformed homeowner that hasn’t kept up with inflation, they low-ball the price. The day after you sign the agreement, they make an offer from an investor and close the deal. Since the the realtor is getting both the listing and selling commission and it sold in one day, that’s great money and they didn’t even have to spend money on advertising it.
So when you get estimates from realtors, you have to get several and average them out, knowing that they’re playing these little tricks of the trade. Don’t be offended, and don’t sign a listing agreement with the first one that comes along.
After you’ve gotten a bunch of realtors to look at your 3cre home, and taken all the information you can from the internet, you should have a pretty good idea of a selling price to start at. You can throw out the highest, the lowest, and then average the rest to calculate the value of your home. At least you won’t be in the dark and you should have a good idea of which realtor is the most honest to deal with as well.