How do realtors determine the market value of your home? There are a number of factors on how realtors determine the market value of your home.
Normally, experienced real estate agents go with their guts, location, and features of the home. However, there are a lot more to consider than the usual three.
The most common factor on why a home does not sell is because of the wrong market value. So if you are thinking of selling your home, should hire an agent who knows how to determine what the market value or the price of your home costs.
So how do realtors determine the market value of your home?
Realtors determine the market value of your home by doing what is known to be a CMA or a Competitive Market Analysis. There is a few information you need to come up with creating a CMA.
- The details and price of the most recent to present sold homes in the area
- The same features that have a demand in the market for ex: 3 bedrooms, 2 bathrooms…etc)
- Data to compare the sold price differences (this gives the agent an idea whether to add more value to your home or cut down a few dollars)
Aside from creating a CMA, realtors determine the market value of your home by assessing the internal and external characteristics of your home. The size, number of rooms, and bathrooms, the quality of the upkeep of the home, the appliances, the garden, the driveway and the road. These features contribute thousands of dollars more on determining the market value of the house.
Another most important factor in determining the market value of your home is the location of the property. Is it accessible to everything you need? – schools, the mall, the city business district. Is it near the parks, the lake or the beach? Is the area known to be safe or not? This requires a little research on the area for the realtor to set the market value it deserves.
For most experienced real estate agents, how to determine the market value of your home depends on their gut feeling. – they have been realtors most of their life, lived in the area for years, and a market value is a piece of cake for them. But of course, before they get there, they have facts and experience to go with it.
Some real estate agents depend on online databases to come up with their market analysis. From there, they compare their prices of other homes similar with yours. It is either they add some dollars on top of their initial pricing or simmer it down a notch.
Every seller should know that determining the market value of your home is a science that has been developed by several real estate agents through the years. By the end of the day, a home is worth whatever someone is willing to pay for it. However, for real estate agents, they make sure it is a constant win-win resolution when it comes to the market value of your home. This benefits you as a seller and the agent as well.
Remember who you work with matters. So, what are you waiting for? Consult one our real estate experts at Nexus Realty! Get the right market value on your home and have it sold immediately. Go to https://mynexusrealty.com/contact/ or call us at 425-429-7880.
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