Home Selling in 02359>Question Details

john smith, Home Seller in Duxbury, MA

How to determine price?

Asked by john smith, Duxbury, MA Sat Aug 24, 2013

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Larry Trainer - Broker, Pembroke, MA

Hi Dan,

The value of your home is easily established, with reasonable certainty, by having a Realtor visit your home in person.

There is no substitute for an onsite inspection. Any specialty work such as 3 piece crown molding, granite counters, new hardwood floors, new kitchens or baths, new siding or decks etc. can be added to your bottom line. These upgrades are not seen by online search engines used by companies who offer a cyber-analysis of value. These are based in part on public records, not actual property specific information.

Your personalization’s might just make your home the new comparable listing yardstick that changes the neighborhoods public data. Show us!
0 votes Thank Flag Link Sun Sep 8, 2013
A GOOD listing agent will explain their CMA to you. What they used for comps, why and what the data means. The data should show what the home will probably sell for and what you should ask based on the similar homes for sale and what has sold in the last 6 months. If you got a report with no explanation you need a new agent who will do it right
0 votes Thank Flag Link Mon Aug 26, 2013
I just wanted to offer a little more in depth explanation of what a CMA is and how we interpret the data to come to a recommended sales price. Normally what we do is try to find similar homes (sq. ft. , acreage, style, bed and bath count) that have sold within the past few months as close as possible to the subject home. This gives us an idea of what a banks appraisal will allow for financing. Then we look at market conditions, supply and demand, days on market, and additional features and benefits that may effect value or marketability , two different things and sometimes hard to determine. For example, a neighborhood setting may appeal to a larger buyer pool and be considered more marketable and in some cases more valuable. Power lines, windmills, highways in the back yard would probably appeal to a smaller buyer pool and therefore negatively effect marketability and value. Other conditions such as seller motivation could be used to determine value, short sales have a longer sale period with risky terms to a buyer and generally sell for less than market value if compared to a similar home with more traditional sale terms.

A real estate agent can only really offer an opinion on market value for re-sale purposes. Others are correct when they say it depends on what you are trying to determine value for. If for insurance reasons they may be looking more towards a cost to reproduce.
Hope that helps !
0 votes Thank Flag Link Mon Aug 26, 2013
Why pay for an appraisal????? unless you have the need for it for estate purposes, divorce purposes, or for a mortgage.

Market value can be higher or lower than the appraised value.

Real estate agents in your immediate market will give you a value based on your home in your market at this time. They will provide you comps available, sold and expired.
0 votes Thank Flag Link Sat Aug 24, 2013
I do agree with Bil Eckler of Venice Fl. When my clients are serious about putting their home on the market, the best way is to have a professional Agent, with experience, do a Comparative Market Analysis. If the property has unique and intrinsic value, have a licensed appraiser do the appraisal. I do not recommend using any of the computer generated programs on internet search engines to gauge the value of your home. Most serious Agents will provide this service free of charge. Please let me know if you need any assistance. Of course the market has been very good lately and this may be a perfect time to put your home up for sale. I would be happy to help. Good luck!
0 votes Thank Flag Link Sat Aug 24, 2013
1. Arrange for a professional appraisal

2. Request a realtor to do a CMA (comparative market analysis)

3. Use a computer generated program (not recommended)
0 votes Thank Flag Link Sat Aug 24, 2013
What is the purpose? Are you selling? Refinancing?

Refinancing your bank will have an appraiser.

Selling you can get a free CMA from you local real estate professionals.
Get 3 and compare them.

If your just curious call me and I can give you a ball park value, as individual prices will vary based on condition and improvements of your individual home and without an interior inspection it is difficult to be exact. Drive by appraisal are done all the time to determine that ball park value.

I am a licensed appraiser and real estate broker as well.
0 votes Thank Flag Link Sat Aug 24, 2013
Get a comparative market analysis from a local Realtor.

Pricing your home is obviously a key part of the home selling process. A home that is under-priced needlessly costs the client potential return. An over-priced home can remain on the market for an extended amount of time, forcing the seller to either wait out a long listing period or have to adjust down the asking price. Getting the pricing right from the start avoids these potential pitfalls.

To get us started a Realtor will prepare for you what is called a Comparative Market Analysis (CMA) of your house. This compares your home to others in the area that are either currently listed, under contract, or have recently sold. Other things that can factor into the CMA are supply and demand, craftsmanship, and the amenities of your home.

The CMA will help us to determine the fair market value.

Tammy Hayes, Realtor
Re/Max Palm Realty
0 votes Thank Flag Link Sat Aug 24, 2013
Your Realtor has the most up to date information on the prices of homes that have sold in your neighborhood. They will use this information along with the size and features of your home to estimate market value.
0 votes Thank Flag Link Sat Aug 24, 2013
Ask your Realtor to show you comparable sold properties in your neighborhood or school district from the past 3 months. Look at the features of those other homes and compare their initial asking price to their final closed price. Also look for any trends in seller's concessions in your neighborhood. Then have your Realtor arrange a tour of the competition, and see through the Buyers eyes how the homes are staged and presented. With that information it should be pretty straightforward to see the pricepoint where the homes are selling, and how you need to prepare it to get the price you want.
0 votes Thank Flag Link Sat Aug 24, 2013
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