2 Mistakes Sellers Should Avoid when Determining a Home’s Value

Determining the value of any propery can be a tricky business. If homeowners are not careful, they can end up losing thousands of dollars by undervaluing their home, or spend months trying to sell and overpriced home. Here are two tips for sellers to help avoid these dilemmas.

  1. Assuming that Recent Renovations will Pay for Themselves

    In effort to increase the sell price of their home, some individuals embark on complex renovation projects to improve the style and desireability of their home. In an area with modern, up-to-date homes to compete with, the temptation to redecorate and redesign can be especially strong. However, these tactics rarely pay for themselves through higher home sale prices. After all, the new homeowners might change all of your creativity and hard work anyway.

    If you still feel strongly about making changes before putting your home on the market, make sure you use your money and time wisely. Focus on kitchens and bathrooms, which buyers tend to care most about.
    Pay more attention to repairs– buyers are rightly suspicious of a pretty home that is not in good working order. Simple fixes, like cabinet doors, leaking faucets, and adding more light fixtures can make a home more likely to sell without the huge expense of redesigns.

  2. Relying on Website tools

    Whether you’re just a regular guy looking to sell a home, or a seasoned real estate agent, it can be tempting to simply Google a home to see how much it might be worth on the market. While online tools, like Zillow’s Zestimates, can be a great place to start, often these tools are incomplete. A true CMA comparative market analysis, using real estate CMA software, offers a more comprehensive vision into a home’s value.
    A CMA report can help the homeowners or home buyers get an understanding of a property’s basic structure, including:

    • square footage
    • number of bedrooms
    • the age of the home
    • amenities, like fireplaces and pools

    Perhaps more importantly, a CMA tools can help

    • see what similar homes sold for in that area in the past
    • see which similar homes are currently on the market, and for what price
    • see how long homes are staying on the market before being sold

    While sites like Zillow offer some of this information, such as past sales histories, they often lack comparisons with current sale prices.

    Ultimately, the goal of a CMA is to determine how much a home is worth in dollars– although lighting and paint colors influence many market decisions, ultimately, real estate CMA software helps buyers know they’re getting a solid, well-built home in a good neighborhood. CMAs then take the property analysis further by helping sellers and buyers understand how each home stacks up against others in the area, so that they can set a fair price and sell their home in good time.

  3. Understanding the market can help any seller. With tools like real estate CMA software, hammers, and a little elbow grease, they can spiff up their property, set a fair price, and make a good sale.

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