How To Get A No Cost Real Estate Valuation
HOW TO GET A NO COST REAL ESTATE VALUATION
Regardless of whether you plan to sell your home or not, as a homeowner, you should always consider its market value. When you have plans to sell your home, you will certainly be more interested in what your home is worth than if you aren’t thinking of selling. Matt Myatt and Team are frequently contacted by homeowners who want to know how they can determine the value of their homes. The market value of a home can be determined in a variety of ways, some of which should be avoided, and others are great. This article explains what market value is in real estate, what methods to avoid when determining market value, and what methods are best for determining a house’s value. Read on to find out how to determine the market value of a home and how you can get a no cost to you real estate evaluation.
What Is Market Value In Real Estate?
There are several types of values when it comes to real estate. The three common values are a home’s market value, a home’s appraised value, and a home’s assessed value. There is a common misconception that these three types of property values are the same, but they are actually very different.
In simple terms, market value is the price a home would sell for on the open real estate market. There are many factors that influence the fair market value of a home, and various methods can be used when determining that value.
Methods To Avoid When Determining The Market Value Of Your Home
Price Per Square Foot Method
Many homeowners and real estate professionals believe the cost per square foot method is an excellent way to determine the value of a home. The sale price of a home similar to a home divided by the number of square feet in the home must equal the value of the home, right? WRONG – the price per square foot method is a good way to understand a general area’s value but should never be used to determine the market value of a home.
Automated Valuation Models
Using a mathematical model along with a database, automated valuation models, or AVMs, provide a real estate property valuation. AVMs are produced in seconds using public records and computer logic to determine the estimated sale price of a property.
The Best Method For Determining Your Home’s Market Value
Comparative Market Analysis
Completing a comparative market analysis of your home is one of the most effective ways to determine its value. The comparative market analysis, commonly known as the the CMA. A CMA is a detailed report prepared by a real estate professional that compares recently sold properties (“comparisons”) within the last 6-12 months in a specific market area. When it comes to a quality comparative market analysis, there are certain things to look for.
Below Are A Few Of The Most Important Aspects Of A Quality & Accurate CMA
- Comparable properties offer similar square footage
- Comparable properties are the same style of home
- Comparable properties have a similar number of bedrooms and baths
- Comparable properties are in the same area as the property to be valuated
- Comparable properties have similar upgrades and updates
These are all factors that influence the sale price of a home. It makes no sense if a CMA includes a home that is in a town that is far from your home. You cannot compare the real estate market in your town to that of a town that’s that far away if the comparable properties do not have similar conditions, upgrades, and features, an adjustment must be made on the market value of your home.You should be able to determine the market value of your home from a CMA that’s organized, professional, and clean. When a CMA is completed properly, most homeowners will understand and agree with the suggested market value.
Are You Ready To Have Your Outer Banks, NC Home Evaluated?
You need to be careful not to fall for one of the poor methods of determining market value. If you are ready for a NO COST real estate valuation Contact Matt Myatt and Team today! We would love to complete a detailed CMA of your home. Often the evaluation can be completed in as little as 24 hours!
- Your evaluation will include:
- 3 comparable homes that have recently sold
- 3 comparable active listings
- A Breakdown of what your realtor believes that value of your home to be
- A Breakdown of the cost to sell your property