This is the first video in 7 Tips for Chehalis/Centralia Area Home Sellers and today we’ll discuss Understanding Your Local Market.
When you’re thinking about making a move, it helps to know what your options are. One of those options, is how much your home is worth and how much you can expect to make. You will probably hear all sorts of rumors about a good market, low inventory, but unless you’re involved with the real estate industry, it’s hard to know an exact range.
Many people go by their tax assessment or online real estate sites like Zillow. Both are inaccurate. The tax assessment follows legal guidelines for value and of course, they’re going to tax you at the highest rate possible. Many times after a sale, the assessed tax value will go up because the higher sales price increases the maximum taxable value. Likewise, Zillow is inaccurate because it uses an algorithm. If you don’t input correct information into the algorithm, you’re not going to get accurate estimates at the end. In my experience, Zillow is off on home valuations by at least 30% or more!
Another option is to hire an appraiser for $400-800. To be quite frank, appraisers rarely get it right. An agent friend of mine told me a story where she told the owners a price and her broker didn’t agree. So the broker told the owner to get an appraisal and they will sell it for that amount, whatever it is. So appraiser came in higher by another $20,000. The home expired a few months later with very little interest.
That leaves you with your best option for understanding your local market: a Realtor. Granted, we don’t always get it right either, but we, for the most part, have a pulse on the market. The key thing to remember is that the market is set by a willing and able buyer for your property. A Realtor is going to be the most accurate estimate of value, and it’s free to get a Comparative Market Analysis done for your home!
Once armed with that information, you’ll then have to decide whether you want to list with a Realtor or sell the home yourself.
>>> Thinking about “Selling my home For Sale By Owner”?
One of the biggest reasons a home owner will chose to sell their home by themselves is to save on the commission. However, in reality you’re discounting your home by 11%+. I’ve worked with many FSBOs and I average 11% greater sales price than their last advertised price, more than making up for the commission. The difference is enhanced exposure. You’re not going to get the highest possible price if that person doesn’t know your house exists!
In summary, if you’re thinking about selling your home, the first step is to know your home’s value range in the current market. You have many options to find that value, with a Realtor being the most accurate. You can then list with a Realtor or market the home yourself. Next week’s video we’ll go over what happens when you receive an offer! Thanks so much for listening and make it an Extraordinary day!
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