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Home Selling Tips in Murrieta, CA: How Much Is My House Worth?

By
Real Estate Broker/Owner with 3B Realty: 951-347-3818, CA DRE# 01864774

Home Selling Tips in Murrieta, CA: How Much Is My House Worth?

I met with a home owner recently who wanted to sell his house. He was interviewing three different real estate agents... a smart move that helps the owner find the right agent to list his home.If you are interested in selling your home and want to learn your home’s value, consult with a local real estate professional who can prepare a Comparative Market Analysis (CMA) of your neighborhood.

During our meeting, after I reviewed his home, he asked the key question on his mind: “How much is my house worth?”

I anticipated this question and had already prepared a Comparative Market Analysis (CMA). The CMA showed what similar homes in his neighborhood had sold for in the last three months. As it turned out, two of them sold within the last three weeks. I explained that the CMA suggested his home’s value was $190,000. 

He stared at me silently.

After a few moments, he said that he was hoping to sell it for at least $380,000 because, “The house down at the corner sold for $380,000.”

He was right. The house down at the corner did sell for $380,000... four years ago. But within the last three weeks, two homes... with the same floor plan, same square footage, same number of bedrooms and bathrooms, similar lot size, and in the same neighborhood... sold for around $190,000. I explained that, “It’s these recently sold homes that have the greatest influence on your home’s current Fair Market Value.”

He was very disappointed, which I can understand given that he thought his home was worth twice what it actually was in today’s market. He reminded me that he had remodeled his kitchen (it was beautiful) and had a great view of the park across the street (it did), and felt that it was reasonable to ask for a much higher price of "...at least 280,000."

While I agreed that those are attractive features of his home, it was unlikely that a home buyer would pay 50% more than his home was worth, even if the buyer wanted to. Why? Because the buyer’s lender will likely only lend 80%-to-90% of the home’s appraised value... and the appraised value will likely be around $190,000.

So how much is your home worth? It’s an inescapable fact that your home’s value is significantly impacted by what similar homes have sold for recently. If you are interested in selling your home and want to learn your home’s value, consult with a local real estate professional who can prepare a Comparative Market Analysis (CMA).


Want to know the instant that a Murrieta home is listed for sale? As a free service, I will set up automated home searches for you. Click here to discover how easy it is to find your dream home.

To set up your free automated home search, please contact me, Bill the Murrieta Broker, by phone or text at (951) 347-3818, or email me at Bill@my3BRealty.com. All I need to know are the features you want in your ideal home and the email address that you want your "Homes for Sale" notices automatically sent to.

Or, to set up your free automated home search right now, please contact me, Bill the Murrieta Broker, by phone or text at (951) 347-3818, or email me at Bill@my3BRealty.com. All I need to know are the features you want in your ideal home, plus the email address that you want your searches automatically sent to.

Contact me today to setup your free automated “Murrieta Homes for Sale” search.

                                                                                        

Murrieta is a young, affluent community, boasting an educated, high-income population that's comparable to communities in San Diego and Orange Counties. Murrieta offers a wide range of new shopping, dining and recreational options, a diverse choice in housing, and a world-class education system. Incorporated in 1991 and with a population of just over 100,000, Murrieta was recently recognized as the safest city in Riverside and San Diego Counties.Murrieta is a young, affluent community, boasting an educated, high-income population that's comparable to communities in San Diego and Orange Counties. Murrieta offers a wide range of new shopping, dining and recreational options, a diverse choice in housing, and a world-class education system. Incorporated in 1991 and with a population of just over 100,000, Murrieta was recently recognized as the safest city in Riverside and San Diego Counties.

Cradled within the junction of the I-15 and I-215 freeways, Murrieta is centrally located to businesses in Riverside, San Diego, Los Angeles, and Orange Counties. New retail centers, industrial buildings, and Class A offices have been completed with more in the planning process. With over 2,000 acres of additional available land, Murrieta is attracting upscale retail centers and quality hotels, as well as research and development/medical technology firms and first-rate healthcare facilities. Murrieta is an ideal place to locate, invest, develop and expand as it is destined to become the premier business hub for the region.Cradled within the junction of the I-15 and I-215 freeways, Murrieta is centrally located to businesses in Riverside, San Diego, Los Angeles, and Orange Counties. New retail centers, industrial buildings, and Class A offices have been completed with more in the planning process. With over 2,000 acres of additional available land, Murrieta is attracting upscale retail centers and quality hotels, as well as research and development/medical technology firms and first-rate healthcare facilities. Murrieta is an ideal place to locate, invest, develop and expand as it is destined to become the premier business hub for the region.

Please subscribe to my blog, Bill the Murrieta Broker, for up-to-date information about Murrieta home price trends, the price trends for Murrieta condos and townhomes, and for Murrieta Open Houses, as well as for Greer Ranch homes for sale and Greer Ranch home price trends, or contact me by phone or text at (951) 347-3818, or email me at Bill@my3BRealty.com.

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 Serving home buyers and sellers in Murrieta with homes for sale, foreclosures, REO‘s, & short sales.Content provided by Bill Burchard
3B Realty

Serving the real estate needs of Southern California home buyers and home sellers.

Willaim Burchard, Broker, REALTOR®
 DRE# 01864774
Cell: 951-347-3818
Email: 
Bill@my3BRealty.com`

Comments(10)

Liz and Bill Spear
Transaction Alliance 513.520.5305 www.LizTour.com - Mason, OH
Transaction Alliance Cincinnati & Dayton suburbs

It's a bitter pill for many to swallow, but better now than after six months of no success on the market!

Aug 23, 2010 08:08 AM
Lora "Leah" Stern 914-772-4528
Coldwell Banker, 170 N Main Street, New City NY 10956 - New City, NY
Real Estate Salesperson

The bottom line is your house is worth only as much as someone is willing to pay for it and they definitely will not agree to pay 50% more than its worth, even if it did appraise.  Still, every seller seems to believe that their home is the exception to the rule.

Aug 23, 2010 08:20 AM
Harry Logan
RE/MAX executives realty - Winnipeg, MB
Your Satisfaction is Guaranteed!

OUCH!  You're absolutely right.  Even if you could find a buyer at that price you wouldn't be able to get the deal financed.

Good Luck with that one.  I think he's going to be a longer term prospect for you.

Aug 23, 2010 08:56 AM
John Thomas
E3 Green HOMES - Boulder, CO
EcoBroker, MSEE, MBA

That's a pretty big disconnect in price...I expect that seller is in for a big reality check if they don't go along with your recommended price.

Aug 23, 2010 09:07 AM
Glenn Roberts
Retired - Seattle, WA

It turns out that we get to credit appraisers with the low value of homes. When a seller wants to know we tell them exactly what you've written. It's not that the agent says so. It's what the appraiser will tell the bank. And that controls the loan.

Aug 23, 2010 09:15 AM
Janice Ankrett
Burlington, ON
Staging Professional

You can understand his disappointment. His major investment just lost a lot of money ;). Perhaps he can take comfort in knowing that the home he buys will have depreciated too?

Aug 23, 2010 09:52 AM
Bill Burchard
3B Realty: 951-347-3818, CA - Murrieta, CA
Broker, Realtor, Representing Buyers and Sellers

Good morning, Liz & Bill: Very true! It will most likely turn out to be a wasted six months, only to end up lowering the asking price to what the current market conditions dictate.

Hi Leah: Yep, home owners take pride in their home and believe the features they find attractive have a lot of financial value. Unfortunately, that’s not necessarily true.

Hi Harry: And that’s what many home owners don’t understand… That their buyer/seller two-party transaction more often than not has a third party involved… the buyer’s lender. And it’s the buyer’s lender who will rely on the expertise of an appraiser to minimize the lender’s risk.

Hello John: I agree. Unfortunately, they didn’t go along with my recommendation… and selected another agent who did list their home for $280,000. I just checked the listing and it’s still active, on the market for 64 days now. The irony is that the home owner told me he had to sell within two months.

Hi Glenn: You’re absolutely right! The only other option is an all-cash buyer… and all-cash buyers typically want to pay well below market value.

Hello Janice: You nailed it! And I explained the relative value of homes to the home owner… that ALL homes have lost the same percentage of value… but it didn’t matter. He was very focused on what his home used to be worth, and let that be the determining factor in setting his price. I sincerely do wish him success in finding “that right buyer” who will pay the elevated asking price… it’s just not very likely to happen.

Aug 24, 2010 03:50 AM
Bill Burchard
3B Realty: 951-347-3818, CA - Murrieta, CA
Broker, Realtor, Representing Buyers and Sellers

More about me: I’m Bill Burchard, a real estate broker licensed by the California Department of Real Estate (Lic: 01864774). I specialize in Murrieta homes for sale, including bank foreclosures (REO properties) and short sales. I also specialize in Greer Ranch homes for sale, the community where I live. I serve the real estate needs of both home buyers and home sellers in Greer Ranch and in Murrieta, CA.

If you want more information about buying or selling Murrieta real estate, or if you want more information about my Greer Ranch Community (including properties for sale), please contact me, Bill the Murrieta Broker, by phone or text at (951) 347-3818, or email me at Bill@my3BRealty.com.

Feb 19, 2011 02:23 AM
Bill Burchard
3B Realty: 951-347-3818, CA - Murrieta, CA
Broker, Realtor, Representing Buyers and Sellers

More about Murrieta, CA: The City of Murrieta is a young vibrant community cradled in the junction of the 15 and 215 freeways in southwest Riverside County. Murrieta lies on the northern border of Temecula, CA, famous for its Temecula Wine Country.
 
Bill the Murrieta Broker: REALTOR®, SFR, CBRS, DRE Lic: 01864774,
Cell: 951-347-3818, Email: Bill@my3BRealty.com

Feb 19, 2011 02:23 AM
Bill Burchard
3B Realty: 951-347-3818, CA - Murrieta, CA
Broker, Realtor, Representing Buyers and Sellers

More about Greer Ranch, Murrieta, CA: The Greer Ranch Community is a fully developed, meticulously well-maintained gated neighborhood, with large homes that are just a few years old. Many homes have gorgeous views of the Temecula Valley below. Located in Murrieta, CA, Greer Ranch is a wonderful place to live and to raise a family.

Bill the Murrieta Broker: REALTOR®, SFR, CBRS, DRE Lic: 01864774,
Cell: 951-347-3818, Email: Bill@my3BRealty.com

Feb 19, 2011 02:24 AM