What is my House Worth
The best way to determine the maximum value of your house in Minnesota is to expose it to the largest possible audience and show it in its best possible light. Another way to find out what your home can sell for is to get an offer from an i-buyer. Sometimes a good starting point for a home seller is to submit requests from internet buyers. Soliciting bids from i-buyers or real estate agents and agencies that market guaranteed offer programs can set the bar. Once you know what these investors and marketing companies are willing to pay you, you have a starting point for the minimum price you should consider when selling your home.
"A home is worth what someone is willing to pay for it and what someone is willing to sell it for." -Joe Houghton.
How do I find the value of my house?
The answer is complex, and it depends on several moving targets. At any given time, buyers and sellers in the Twin Cities can find themselves motivated and be willing to buy or sell their homes accordingly. It is essential to know that just because one home sold for a specific price, the same house next door is not necessarily worth the same amount. It comes down to a few factors: motivation, condition, quality, size, staging, marketing, positioning, storytelling, and supply and demand. There is also a luck factor or karma factor, tricky to measure.
Mistakes homeowners make when valuing their homes.
Home sellers usually start by going to the web. They google their address. The search results that populate first are from zillow.com, trulia.com, homes.com, realtor.com, etc. Websites are manipulated, primarily based on the associated algorithm pulling from the tax records. The perception by consumers is that the tax information is correct and that the assessed value is accurate. My point is this. Do not be manipulated by the internet when it comes to the value of your home.
The mistake homeowners make when getting a CMA.
Homeowners ask strangers to provide a comprehensive market analysis of their homes. The problem with doing this is that most agents spend very little time analyzing your property and the comparable properties. The main objective of most agents is to tell you what you want to hear. Their goal is to convince you that they can sell your property for more than anyone else can, and their entire presentation becomes an infomercial on why they are the best Real Estate Agent MN.
Appraisal vs. CMA
Some homeowners believe an appraisal determines the actual value of their home, and the truth is that appraisers are usually not real estate agents. Banks typically hire appraisers after the sale to determine the amount of money the bank is willing to base its loan numbers on. Appraisers get a copy of the purchase agreement before estimating the property's value. In my opinion, their opinion is biased the second they see the purchase agreement.
The best way to determine the value of your home
To determine the actual value of your home, you need to get appropriate advice from the most respected and trustworthy real estate agent in your area. The most honest and Realtor will give you a price range they believe the home will sell. Good agents are hesitant to commit to a suggested listing price before hiring them to work for you. Realtors understand how sellers are drawn to the optimistic Real Estate Agents, the ones that lead you to believe they will make you more money. The best advice we can give is not to choose a listing agent based on what amount will sell your home. You should select a Realtor before they discuss pricing strategies. This assures you that the advice they give you is based on their real estate experience rather than manipulating homeowners into hiring them. Read the local reviews, research the listing agents you have interviewed, google search, or bing search the local Realtors name and company.