With housing inventory remaining low in Snohomish County and concerns of continued interest rate hikes, you are probably wondering how those factors will impact a home's or property's market value.
Or, are needing to sell a property due to a death or divorce and haven't been tuned into the housing market for a period of time? Whatever the reason for selling, it's important to understand the "market value" of your home or property and how its derived.
Related Webpage: Click >>> To Receive an Instant Property Valuation
In Snohomish County we use a Market Approach when determining a home's or property's value based on comparable (similar) properties. That Market Approach looks at comparable active, pending inspection, pending, and sold properties as well as days on market and median/average closed sales prices to determine a recommended listing price.
Related Webpage: Click >>> How to Sell a Home Flowchart
Yet, there are other items that sellers need to be away of when understanding home valuations and in this article we'll outline the factors that go into:
- What the Market Value of Your Home is NOT
- What the Market Value of Your Home is BASED On
- What Sellers / Homeowners Can Control
- What Sellers /Homeowners Cannot Control
The Market Value of Your Home is NOT:
- What you have into it. Just because appliances or flooring costs $5,000 doesn't mean the home is worth $5,000 more.
- What you need to get out of it. Trying to sell to NET an expected dollar figure is not a good pricing strategy and typically setups unrealistic expectations.
- What it is appraised for. Appraisals are good for 90 days in the financing world yet market conditions can change faster that anticipated - either up or down.
- What you heard your neighbor's house sold for. Even though the neighbor's house could be used as a comparable usually condition and amenities can vary greatly.
The Market Value of Your Home is BASED ON: What a buyer is willing to pay for the property "today".
- Today's Market Conditions
- Today's Competition, Both Buyer and Seller.
- Today's Financing Options and Interest Rates.
- Today's Large Economic Conditions.
- Buyer's Perception of the Property's Condition.
- Location and Neighborhood.
- Normal or Expected Market Time
Now, we've written articles how seller's can improve their position and stand out from the crowd with hiring the right real estate brokers, interviewing and comparing seller services, and more in the buyer and seller advice category yet for a quick review
As a Seller You can Control:
- The Price You Ask.
- Condition of the Property at Time of Listing.
- Access and Availability for Buyers to View the Home / Property.
As a Seller You Cannot Control:
- Market Conditions at the Time of Listing.
- The Motivation of Competing Home / Property Owners.
- A Buyer's Perception of the Home or Property's Value at Time of Listing.
That is understanding home value in a nutshell yet this isn't a simple process. All the time and effort put into a comparative Market Analysis time and experience. So if you're wanting to know more about how much your home or property is worth, please contact us and we'll get back to right away. Thank you for reading.
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