Despite all the available tools, calculators, and expertise, it isn’t easy to judge the price of a property. Various factors contribute to the value of your home, and that varies from area to area. The same piece of real estate can have different prices at different locations. That’s why most resources will show you the “FMV of your property.” That’s the price customers are willing to pay for your home.
The cost of land has a specific value and will remain the same for the entire neighborhood. However, the cost of the structure (construction) will be different as per the layout, the material used, and the amenities provided. Whether you’re looking to sell the house or you’re interested in refinancing, you need to know the value of your home.
You can use a few resources to judge the market value of your home.
Every year, you receive a property tax bill from the IRS, which is based on the base price of your property. You can use that assessment to check how much your home is valued. However, tax assessments can be wrong. It’s not a surprise to receive a high tax bill because the base price calculations were not correct.
Another way is to get a professional appraisal report. It will be mandatory to get one if you’re trying to refinance, or you’re planning to buy a property. A local appraiser will visit your home, and he’ll assign a price based on the local data, location, and condition of your home. Getting an appraisal doesn’t mean that your home should sell for that price. Depending on market conditions, your home can sell for a high/low price.
Lending institutions and real estate agents often rely on a broker price opinion because it’s cheaper to get one, and it can be completed quickly. A primary difference between a BPO and a professional appraisal is that appraisers are required to follow the protocols outlined by the USPAP (Uniform Standards of Professional Appraisal Practice). The appraiser has to make a note of everything, and when he comes up with a price, he must support his conclusions. The appraiser can adjust the comparable sales and listing prices based on the estimated reaction of prospective buyers.
A BPO is different in the sense that it’s performed by a real estate expert who is usually not a certified appraiser. Real estate agents and experienced brokers often provide this service by doing an interior/exterior examination of the property. Unlike an appraisal, BPO considers the repairs required to make the house sellable. The broker will recognize the value of similar properties in the same neighborhood, recent sales data, and the estimated cost of getting the house ready for sale. Once done, you receive a figure that’s the estimated price for the property.
If you have time, you can test the waters, but putting your home on the MLS. Try a price, and see what offers you’re getting. You can judge market conditions that way. Be careful because your home will lose its appeal if it keeps sitting on the market for extended periods.
Still not sure how much your home is worth? How much will you get for the house if you sell today?
Contact Heritage Home Solutions. We can give you a guaranteed offer for your house based on its current condition. It will be a cash offer. We’ll be buying as-is, and we can close on your timeline. You can click here if you’re interested in getting a cash offer from us.