Whether you’re just starting out in the process of searching for a real estate agent to help you sell your home in Seattle, Washington, you’re just a curious buyer or not, we recommend you know if you should list your home.
For high-demand regional properties with new upgrades, you can list and sell your home at 1%-3%, which is above the rating. However, this is not a cut-and-dry rule. Prices of property on an valuation require some careful thought, and can lead to complications if the buyer is on a loan. All of this will be investigated in this Redfin article.
In this article:
What is an evaluation?
Should I get a pre-meet?
Keeping the terminology straight
How to increase the evaluated value?
How can you sell your home more than its value?
Conclusion: The above evaluation
What is an evaluation?
An evaluation is the determination of the fair market value of a home. If the buyer funds the purchase, the buyer’s lender often orders. The valuation is used by lenders to determine whether the asking price is fair for the property and whether they are willing to take the risk of lending money to the buyer. Sellers can also benefit from the valuation, so they can know if they’re also getting a fair deal.
From comparable homes and selling prices to the special features your home has, we take into account the overall picture of your property. This is what can affect your rating:
Local market situation for comparable homes nearby and their selling prices Home lot size Lots Terrain Home age and condition upgrades and improvements to home home appliances
In short, valuation is a determination of the fair market value of your home. Many factors can affect your valuation, including comparable home selling prices, residential supplies, and local market conditions.
Should I get a pre-meet?
Getting a pre-passage is a good idea if you have done a substantial amount of home upgrades that will increase the value of your home. For example, if you’ve just added value to new home features like stainless steel appliances, refurbished backyards, or granite countertops, your home is more valuable than previously appreciated. Another reason to get a pre-application is if you don’t have an equivalent list, also known as “comps,” or if you sell your property yourself without a real estate agent.
Market status can also affect whether or not you should get a pre-valuation. If it’s an extreme seller’s market – that means that the house tends to sell more than they exceed their value – it will help you know how to list your home. Ask Redfin’s agents if advance application is a good idea for you.
Important takeaway: Get a pre-application, if you have done an important home upgrade, there are no known comps and you can sell your property yourself or an extreme seller’s market.
Keeping the terminology straight
There are a lot of conditions being thrown at when it comes to home prices, and it can be difficult to keep them all straight. Which do you use to let us know how you are listening to and how to price your property?
Evaluated values
The value of your home is provided by the local tax appraiser’s office and used to determine the amount of property tax. Prices for a home based on this amount is not a good idea, as this value is usually much lower than both the valued value and the fair market price.
Evaluated values
The value value is usually provided by a professional appraiser hired by the lender. This takes into consideration the overall property, including amenities, lot size, and home age. This is how much a professional appraiser believes your home is worth considering its comparable property and local markets.
Fair Market Value
A fair market value is how willing the buyer pays your home. This is usually the most common way to price a home. The fair market value may be higher than its valuation, especially if the buyer is attached to the home, or if the location shows significant demand and low supply. To understand the fair market value of your home, you can work with Redfin Real Estate Agents to create a competitive market analysis
Things to remember: Price homes above fair market value is the most comprehensive pricing strategy. Work with Redfin’s real estate agents to create competitive market analysis.
How to increase the evaluated value?
The easiest way to sell a home for more than its value is to get a good review. Although there may have been no evaluation or prior application, there may be some simple improvements to improve the value that was evaluated.
Focus on curb appeal (clean and maintained gardens, updated garage doors, new exterior paint, sealed cracks in your driveway) Keep the inside of your home clean and tidy.
Takeout: Focusing on the appeal of curbs, repairing things that need to be fixed, repairing things that require tidying up the house, and adding a coat of fresh paint can increase the value of your rating.
How can you sell your home more than its value?
Besides improving the value value and increasing the amount the house sells, there are several ways to sell it more than its value.
Beware of the contingency of evaluation
If the unforeseen valuation situation results in a lower than the agreed purchase price, and if the home is valued, the buyer may renegotiate or withdraw the transaction. Obviously, this will make it difficult to sell your home for more than its value. However, if the property is in a vicinity where there is significant demand, the buyer may abandon the unforeseen situation of valuation when making an offer. Note your neighborhood comp and how much you sold to determine whether pricing on ratings is a good idea for you.
Renegotiate the offer
If the valuation comes back because it is less than the selling price and the buyer is taking out the loan, this is called the valuation gap. In this case, concessions can be provided to encourage buyers. It will help the transaction still close, such as paying for closing costs or making requested repairs. However, it is still up to the buyer to make up for the difference between the valued price and the selling price. If the buyer agrees to certain concessions, has cash to cover the differences and is truly in love with real estate, the contract could still be closed at the selling price. If your rating is significantly different from the selling price, be prepared to renegotiate.
Selling at all speeds
In a particular seller’s market, there are all cash buyers who are willing to pay the real estate in full. The seller’s profit is that the buyer does not need to go to the lender to go to the lender. In other words, there is no risk of valuation gaps. If the buyer wants the property badly enough and is willing to pay more than it is worth making it more competitive, you can sell your property more than its valued value.
Too long; Didn’t read: Due to the contingency of the valuation, if the valuation falls below the selling price, the buyer can withdraw or renegotiate the transaction. If that happens, you can provide concessions such as paying for closing costs and covering repair costs. Alternatively, if the buyer wants the property well, they can pay the valuation gap, which is the difference between the value of the valuation and the selling price. Finally, attracting all cash buyers allows you to sell for more than your value.
Conclusion: The above evaluation
When determining the extent to which you exceed your rating, consider the market you are selling. In competitive markets like Portland and Los Angeles, where rental value is at a high price, they can surpass their valuation value. Understanding the differences in valuation, value, fair market value and collaboration with experienced Redfin agents will help you set your prices with confidence and attract offers that exceed your expectations.
