So, you have decided to sell your house – good for you! We mean that! Starting over in a new home can be a scary decision to take, but sometimes it is the right one. However, that does not mean that it is an easy one.
On the contrary, some details and responsibilities come with deciding to put your house up for sale. Unfortunately, it is not as simple as putting up a listing on eBay and selecting the highest bidder. There are many more legal and bureaucratic obstacles you need to overcome before you finalize this process.
But, don’t let that scare you! You came to the right place. Stick with us, and we will make sure to give you the best and most relevant advice on all the things you need to check from your to-do list before you sell your property. Click on this link for the most common mistakes people make: https://www.investopedia.com/articles/mortgages-real-estate/08/home-seller-mistakes-selling-house.asp
Now, you might think you know the value of your real estate, but your estimations could be far from the reality! Sure, only you know how much you invested in it over the years to maintain and update your property, but there are more factors at play here.
Although you may have a rough idea of how much your house costs, you should always hire a professional to do an appraisal first. This will not only help you avoid uncomfortable conversations with potential buyers, but it will aid you in financial planning when searching for a future home.
External determinants of property
You would not be the first one to assume that the price you bought your property for could be the same for what you sell it for today. Sadly, that is not how things work. Many things can impact your real estate valuation, such as the housing market.
As we saw during the Great Recession in 2008, the housing market is not as stable as it was presented to be, and just like all other commodities, its supply and demand can vary greatly. So, how should you approach the evaluation of your home?
Firstly, take a look at the prices of similar properties in your area. If they are actively being sold or have been recently purchased, they have also most likely been appraised by a professional. This way, you could get a realistic picture of what price you can get for your house.
Moreover, the location of your property is quite an essential component. Namely, if it is in an area where housing is highly-sought, you can expect its selling figures to be higher than expected. Conversely, if your house is in a more rural environment, far away from amenities such as shopping malls or hospitals, getting a tall figure can be challenging.
This is quite similar to the process that an appraiser does too. However, the prices in the market are not the only thing your appraisal is based on. The cost of your house could drop or rise depending on its condition. Read more about it here.
That is where the quality of your home comes in. Now, this can be determined from several characteristics. Primarily, the age of the house is the one that matters the most. Naturally, a property built more recently tends to score higher on the pricing market because of the relative newness of the structure. Still, real estate in historic locations could also be evaluated quite highly because of its proximity to certain monuments.
Another critical segment in determining your real estate value is the square footage. The price increases proportionally with the area of the house. Subsequently, the more bathrooms or bedrooms a place has, the bigger the chance its market value will increase. Some homeowners decide to add an extra bedroom or a bathroom if their property has been devalued because of some other factors. You should always consult your agent before you decide on this, though.
An additional reason that could seriously impact how accurate home appraisals are is its construction and the materials used in it. This ties in closely with age, as newer houses tend to have better and stronger materials, but that is not always the situation. In any case, if you are selling an older home, make sure to provide proof of the safety of its materials. Trust us; you do not want to end up in a lawsuit because of slight negligence.
Lastly, proper insulation and air conditioning can often be a deal breaker in price negotiations. That is why you should always do a thorough inspection of your heating and cooling systems, as well as your plumbing and electrics. While keeping these in good condition will not raise your value, any issues with them will undoubtedly tank it. That is why you should keep an eye on them and provide proof of maintenance before the appraisal.
It is also good to keep in mind that many appraisers now appreciate when homes are energy efficient. Having some of these features added to your house might increase its value and add a couple of figures to its worth. Follow this link for more information on it: https://www.energy.gov/energysaver/design/energy-efficient-home-design
A quick summary
Well, now that we have covered all of that, there is still an unanswered question. Are these evaluations accurate? No worries, the chances of you getting a low estimate are really rare. However, almost half of them come in at a higher or equal worth if the appraiser is unaware of the agreed-upon price. Nevertheless, if you let your appraiser know about it, the odds of getting the exact price you are asking for are almost perfect.
We hope we have armed you with all the knowledge you need to get started on your selling journey. Although it can be pretty laborious, this list of convenient tasks you need to accomplish might ease your burden a bit. Just remember – stay calm and do not lose faith; everything else will follow in its stead!