Although the rate of increase has slowed, home prices are still rising. So right now may be a very good time to think about selling. Before listing your home, you need to know what it is worth so that you can price it accordingly. But when the offers start coming in, it’s difficult to know whether you’re getting a good price for your house considering all the different valuation methods at play. Read on, then, to find out how to know whether you are getting a good price for your house in Seattle.
Common Home Valuations
Knowing its value allows you to know whether you are getting a good price for your house in Seattle. So let’s look at some common home valuations and methods . . .
Fair Market Value
“Fair market value encompasses what your home looks like to prospective buyers compared to other homes in the area.” It takes into account “the sale price of a home that’s similar to yours (the same number of bedrooms and bathrooms, square footage, [and] outdoor space, say).”
Fair market value is the valuation that will benefit you the most in determining whether you’re getting a good price. If you’re interested in finding your home’s fair market value (and you should be), you can contact a Seattle agent for assistance.
While arriving at appraised value does entail some of the factors used for determining fair market value, it is nevertheless different. “To calculate appraised value, a licensed appraiser considers the location, size, and condition of your home, [as well as] any renovations you’ve completed. The appraised value is what mortgage lenders look at.”
This is the valuation used for tax purposes, “the assigned dollar value of your home used by local county tax assessor to determine property taxes.” The assessed value is typically lower than fair market value and so isn’t as much help for knowing whether you’re getting a good price.
Having laid that groundwork, let’s now look at some ways you calculate the value of your home for price purposes.
Use an Online Home Value Estimator
A good starting point (but only that) to find out whether you’re getting a good price for your house is to use one of the many available online home value estimators, often called automated valuation models (AVMs). These online tools “use algorithms and publicly available data, such as recent sales, tax assessments, and other public records, to generate an estimate.”
“Home value estimators are good starting points to assess the value of your home very quickly.’ Just be aware that they aren’t always all that accurate. Because they rely on algorithms, they don’t “take into consideration factors such as recent upgrades, condition of the house, curb appeal, and external factors such as traffic noise.’
Check the County/Municipal Auditor’s Website
Another way to arrive at a valuation for seeing whether you’re getting a good price for your house is by checking the county or municipal auditor’s website. This will, however, let you know your home’s value from a tax perspective.
“County auditors periodically assess the value of residential properties for property tax purposes, and this information is available online. You can look up the assessed value of your house to see if it has appreciated or compare the figures with other homes for sale.”
Hire a Professional Appraiser
For a more accurate home value estimate as an aid to finding out whether you are getting a good price for your house, you might want to hire a professional appraiser.
“The appraiser considers the characteristics of the property, such as how many bedrooms and bathrooms it has, as well as comps, similar to a CMA prepared by a real estate agent.” Professional appraisers are typically licensed/certified by the state and can provide an objective valuation, but their services will cost you, around $350 on average.
Get Your Agent to Perform a Comparative Market Analysis
Probably the best way to know if you’re getting a good price for your house in Seattle is with a comparative market analysis, CMA. Your agent can perform a CMA to accurately determine your home’s market value – that is, what it is actually worth on the market, what buyers are willing to pay for a home like yours. Typically, when you know the market value, you can know whether you’re getting a good price for your house.
“To complete the CMA, [agents pull] data about recent home sales of comps in the area, looking closely at recent sale prices of homes very much like yours in the immediate area. “They then draw on their knowledge of the neighborhood and any special characteristics of your property to estimate its value. . . . A good agent will have the necessary tools to drill down and find an accurate market value. . . . And experienced professional follows the market, looks at home conditions, and knows the neighborhood – all while making determinations using both data and their experience.”
This is perhaps the best and most accurate way to determine your home’s value so that you can know if you’re getting a good price. And we have the experienced, local agents who can help you with this. When getting a good price for your house in Seattle is your goal, contact us at (206) 465-7215.