How to Find Out What Your Home Is Worth Before You Sell It
If you're looking to expand or to downsize your living situation, selling your home for the right price is always at the top of your list. But how do you know how much your home is really worth? You could check what you paid for, but unless it's recent, it's most likely not the same number. Understandably, this can be quite a frustrating experience for homeowners. Therefore, here are some of the best ways your agent can help you determine the overall value of your home before placing it on the market.
Your Agent Can Provide a CMA
Although an agent is there to help you determine your home’s value, this doesn't mean you shouldn't take some action in getting a rough estimate. This can often be done through online valuation tools. Once you've gathered information about your home's estimated value, you can then take that information to your real estate agent and request a CMA, which is a comparative market analysis. A CMA is not as accurate as a property appraisal, but it can be very close to providing the correct valuation, and it won't cost you a thing to receive the report.
Real Estate Agents Can Help You Determine Your COMPS
Before an agent can provide you with an accurate number, he or she will first research three comparable sales, also known as COMPS. The reason why this information is so valuable is that only real estate agents and appraisers have access to what is called a multiple listing service or MLS for short. This service is more of a system that agents can check to see which properties around your area are up for sale and even which ones are in the process of being listed. They can then use this to look at similar homes in your area and see how much those other houses are selling for or are potentially going to be sold for. This is incredible research that you might not have access to if you didn’t have an agent.
Agents Can Help You Avoid Common Pricing Mistakes
Perhaps the most common mistake homeowners seeking to sell on their own make is pricing their homes based on an amount charged per square foot. This practice will often place you at a disadvantage when pricing your home as other factors, such as additional rooms, security, and location, can play a part in bumping up your home’s value. The only time per square foot should be used to price a home is when all the surrounding homes are exactly the same.
With the help of a real estate agent and a little bit of your own research, you can figure out how much your home is worth before you put it up for sale.