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Q:
WHAT IS THE DIFFERENCE BETWEEN A VALUATION AND MARKET APPRAISAL?
A:
Valuation is a
certified valuer's opinion of the worth of a home at a given point in
time, it is based on recent sales of comparable properties, location,
square footage and construction quality and design, floor plan,
neighbourhood and availability of transportation, shopping and schools. Valuers also take lot size, topography, view and landscaping into
account. This service varies in cost depending on the price of the
home. Lenders require valuations as part of the loan application
process; fees range from $200 to $300.
Market
appraisal is what price the house will bring at a given point in
time. A comparative market analysis is an informal estimate of market
value, based on sales of comparable properties, performed by a real
estate agent or broker. They are based on similar sales and property
attributes. KERRYLEA REALTY provides free Market Appraisals.
Q: SO WHAT IS A HOUSE WORTH?
A:
A
home is worth what someone is prepared to pay for it.
Everything else is an estimate of value. To determine a property's
value, most people turn to either an valuation or a market appraisal.
Q: HOW IS THE PRICE SET?
A:
It's very important to price your home appropriately relative to
current market conditions. Because the real estate market is continually
changing, and market fluctuations have an effect on property values,
it's imperative to select your list price based on the most recent
comparable sales in your neighbourhood.
A comparative market analysis provides the background data on which
to base your list-price decision. Study the comparable sales material
presented to you by the different agents you interviewed initially.
If all agents agreed on a price range for your home, go with the
consensus. However, watch out for an agent whose opinion of value is considerably
higher than the others.
Q:
WHAT ARE THE TWO MOST IMPORTANT FACTORS WHEN SELLING A HOME?
A:
Even in a down market, real estate experts say price and condition
are the two most important factors in selling a home. So, the first step
is to lower the price. Also, go through the house and see if there are
cosmetic defects that you missed and can be repaired.
Home sellers should make sure that the home is getting the exposure
it deserves through open houses, advertising, good
signage and is listed on multiple websites.
Q:
WHAT IS THE DIFFERENCE BETWEEN LIST PRICE AND SALE PRICE?
A:
The list price is a seller's advertised price, a figure that usually
is only a rough estimate of what the seller wants to get. Sellers can
price high, low or close to what they hope to get. A seller may need to adjust the listing price if there have been no
offers within the first few months of the property's listing period. To judge whether the
list price is a fair one, be sure to consult comparable sales prices in
the area.
The sales price is the amount a property actually sells for. It may be
the same as the listing price, or higher or lower, depending on how
accurately the property was originally priced and on market conditions.
Q:
HOW DOES SOMEONE SELL A SLOW MOVER?
A: Even in a down market, real estate experts say that price and
condition are the two most important factors in selling a home.
The first step is to lower the price. Also, go through the house
objectively and
see if there are cosmetic defects that you missed and can be repaired.
Refer to comments made by previous buyers who have inspected the home.
Secondly, home sellers should make sure that the home is getting the
exposure it deserves. Is there open for inspection being carried
out? Is there good signage?
Another option is to pull the home off the market and wait for the
market to improve.
Q:
WHAT MISTAKES CAN SELLERS MAKE WHEN SETTING AN ASKING PRICE?
A:
When a home
is listed for sale it becomes a commodity like all other merchandise in the
market place. The consumer shops around and compares features and prices
prior to making a decision to purchase. Most consumers who are making
a major purchase do their research. They are knowledgeable.
It is hard for a seller to:
-
Be objective as they are emotionally attached for various reasons to their
home or investment. This may be because of happy memories, the hard work to
pay for the home, investment monies spent on repairs and maintenance, having
to sell for a set price to finance their next purchase, to name just a few
reasons.
-
Understand that "improvements" may not add to the market value, however,
improvements may add comfort and convenience to the seller.
-
Know all the comparative sales in the neighbourhood as advertised asking
price may not be the actual selling price.
-
Conduct a competitive market analysis of truly similar properties in the
area as the external appearance of a property does not necessarily reveals
the internal condition or features.
Q:
WHAT ABOUT HIGH APPRAISALS:
A:
An
Estate Agent who appraises your property at the highest
price does not necessarily guarantee a successful sale. It
may be the price you want to hear, but does it represent
fair market value?
KERRYLEA REALTY can provide you with up-to-date comparative sales data in
your area to best inform you of your market activity. Of course a property
that is highly competed for can sell for a record price, and that is always
our aim!
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