Is It Realistic to Hold Out for More Than Market Value for Your Home?
by Ted Ricasa on Aug 26, 2014
Most experts agree that while the housing market has improved, it hasn't fully recovered yet. Home sales are up, but prices continue to fall or remain low. What does this mean for sellers? When selling a home, you of course want to get the full market value. But is this realistic? Should you hold out until a buyer agrees to your price? The following are just some of the factors you should take into account when trying to get the full market value for your home.
What Determines Market Value?
The market value of your home serves a number of different purposes. Insurance companies use the market value to determine your rates. Lenders will use the market value to determine your home refinance or whether you qualify for a home equity loan. However, the market value is also used to determine what your house should sell for. How do you figure your market value?
First, look at what prices other homes in your neighborhood are receiving. Then, find out what the total cost would be to replace your home entirely. If you rent out rooms in your home, include the income your home brings in. Finally, have your home appraised by a professional. Together, these factors will help you come up with a fair market value.
Getting the Most for Your Home
So, now you have the fair market value of your home. Is it realistic to expect a buyer to pay this amount? That depends. Right now, prices are low and continuing to fall. If you just purchased a home in the past few years, you may not be able to sell for the price you paid. Some expects recommend waiting until the market turns a corner. After all, you will have commission costs and fees in addition to the reduced price you may have to accept, along with a home that could spend months, even years, on the market. While market value is always the goal, depending on how much you paid, how much you owe on the mortgage, and when you bought your home, you may need to reevaluate your goal.
What's the Best Route for Selling Your Home?
There are basically two routes for selling your home. The first is through traditional avenues, such as working with a real estate agent. This is your greatest chance at receiving the market value for your home. The other is a short sale, in which you sell for the amount left on the mortgage or a price far below market value. This is faster, but you receive less. If your goal is market value, then speak with a real estate agent and professional appraiser. They may be able to help you decide whether you should shoot for market value or simply wait until the housing market improves. If you think you may be interested in selling a home, you can contact Fast Home Help to request an all-cash quote. We're happy to answer any questions you may have about the process of selling a home.