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 to show it in it's 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 offers from  i-buyers or real estate agents and agencys 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 preparing to sell 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 home accordingly. It is important to know that just because one home sold for certain 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 of course supply and demand. I personally believe that there is also a luck factor or karma factor, but that is tricky to measure.

Mistakes home owners make when valuing their home

Home sellers usually start by going to the web. They google their address. The search results that populate first are from websites like zillow.com, trulia.com, homes.com, realtor.com, etc. The problem with these websites is that they are easily manipulated and they are largely based on  the information that the associated algorithm is pulling from the tax records. The perception by consumers is that the tax information is correct and that the assessed value that the homes property taxes are based off of is accurate. This could not be further from the truth. My point is this. Do not be manipulated by the internet when it comes to the value of your home. 

The mistake home owners make when getting a CMA

Home owners ask complete strangers to provide them with a comprehensive market analysis of their home. The problem with doing this is that most agents spend very little time actually 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 a infomercial on why they are the best Real Estate Agent MN.

Appraisal vs CMA

Some home owners believe an appraisal determines the true value of their home. The truth is that appraisers are usually not real estate agents. Appraisers are usually hired by banks after the sale has occurred to determine the amount of money the bank is willing to base their loan numbers off of. Appraisers get a copy of the purchase agreement and are told to provide an unbiased estimate of the value of the property. In my opinion, their opinion is biased the second they see the purchase agreement. 

The best way to determine your homes value

To determine the true 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 ethical realtor will give you a price range that they believe the home will sell. Good agents are hesitant to commit to a suggested listing price before you have hired them to work for you. Top Realtors know that 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 they tell you they will sell your home for. In fact, you should choose your Realtor before they discussing pricing strategies. This will assure you that the advice they give you is based on their real estate experience rather than manipulating home owners into hiring them. Read the local reviews, research the listing agents that you have interviewed, google search or bing search the local Realtors name and company. 

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Saturday, November 27, 2021

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