What’s My Real Estate Really Worth?

How much is your real estate—your house, condominium unit, cottage, income property really worth in today’s real estate market? Today more than ever anyone who is contemplating selling real estate property should seek the professional advice of their local Realtor and their expertise in this field. Many people use any number based on some figure they have heard from a neighbor, or seen in a local newspaper, when in fact, the real number should be lower or even higher.  Only a real estate professional has the real figures of what properties have sold for or are on the market for.  Although there is no set definition of what a market evaluation should include, there are a few basic ingredients that can be useful in evaluating the true value of the property that you want to sell. Analyzing actual property sales for your neighborhood, or area, and for properties similar to yours in surrounding neighborhoods will provide solid ground for establishing value.  All of the listings which terminated at the end of the usual thirty to ninety day period without a sale. The expired listings are typically considered to be over-priced for the market, based on the condition of the property and current buyer patterns. These listings can also represent insight into marketing strategies to avoid or to adopt in your area.  If your property were listed, how would it compare with the other houses or condominiums that buyers who are shopping in that location, or that price range, would be shown?

It’s the buyers’ needs, wants, and what’s “in,” not sellers’ costs, that determine the value and sales price.  Repairs, modernizations and improvements to your property can boost value. The real estate professional will offer some simple, cosmetic suggestions and others which may involve investment with a predictable return. Listening to these suggestions is the beginning of learning to separate pride of ownership from investment realities. What you love is not necessarily what buyers will pay top dollar for in your location. For instance, a swimming pool can devalue a property in some neighborhoods. In others, this amenity is highly prized.

Using the guidelines I have listed will help you to decide the true value of your property and help to place a realistic sales price.  You’ll be led through the process of determining a range of value for your property. The real estate professional will explain why market value is a range rather than an absolute value. The relationship between that value and property-tax market value will also be discussed since local variations are significant. The value range will be evident to you after this buyer’s-eye-view evaluation. It’s not the list price, or even market value, but what you would net, or keep in your pocket, that is really important. Typical costs will help you fully appreciate what value in an offer will mean to you.

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