Q: How can I determine how much cash I will walk away with from the sale of my home?
A: Based on the price that your agent helps you set, that agent will be able to give you an idea of your expected expenses and your estimated proceeds. You begin with the sale price and then subtract anticipated costs. Remember this is only a ballpark figure based on estimates.
Q: What is the difference between market value and appraised value?
A: Appraised value is a certified appraiser's opinion of the worth of a home at a given point in time. And market value is what price the house will bring at a given point in time. A comparative market analysis is an informal estimate of market value, based on sales of comparable properties, performed by a real estate agent or broker.
Q: How does someone sell a slow mover?
A: Even in a down market, real estate experts say that price and condition are the two most important factors in selling a home.
The first step may be to lower the price. Also, for defects and/or repairs that might need to be done.
Secondly, home sellers should make sure that the home is getting the exposure it deserves through open houses, broker open houses, advertising, good signage and a listing on the multiple listing service (MLS).
Finally, frustrated sellers who have no equity and are forced to sell because of a divorce or financial considerations could discuss a short sale or a deed in lieu of a foreclosure with the mortgage lender.
A short sale is when the seller finds a buyer for a price that is below the mortgage amount and negotiates the difference with the lender.
In a deed-in-lieu-of-foreclosure situation, the lender agrees to take the house back without instituting foreclosure proceedings. But these would be considered more radical options than lowering the price.
Q: How is the price set?
A: It's very important to price your home appropriately relative to current market conditions. Because the real estate market is continually changing, and market fluctuations have an effect on property values, it's imperative to select your list price based on the most recent comparable sales in your neighborhood.
A comparative market analysis provides the background data on which to base your list-price decision. Study the comparable sales material presented to you by the different agents you interviewed initially. If the analyses are more than two or three months old, have your agent update the report for you.
Watch out for an agent whose opinion of value is considerably higher than the others.
A: Basically, freshness, neatness and good working order are the chief keys to top sales appeal. Doing whatever you can to put your house's best face forward is very important if you want to get close to your asking price or sell as quickly as possible.
A: Market value is tied to several trends: economic conditions, national, state and/or local political activity that produces changes in tax laws and tax rates, sales regulations, zoning restrictions, etc.; pressures of supply and demand; and seasonal influences.
A comparative market analysis and an appraisal are the standard ways consumers, lenders and realty agents determined what a home is worth. Your real estate agent will be happy to provide a comparative market analysis, an informal estimate of value based on comparable sales in the neighborhood.
Q: What is the best time to buy?
A: Because many buyers prefer to move in the spring or summer, the market starts to heat up as early as February. Families with children are anxious to buy so they can move during summer vacation, before the new school year begins. The market slows down in late summer before picking up again briefly in the fall. November and December have traditionally been slow months, although some astute buyers look for bargains during this period.
Q: What are the two most important factors when selling a home?
A: Even in a down market, real estate experts say price and condition are the two most important factors in selling a home. So, the first step is to lower the price. Also, go through the house and see if there are cosmetic defects that you missed and can be repaired.
Home sellers should make sure that the home is getting the exposure it deserves through open houses, broker open houses, advertising, good signage and a listing on the local multiple listing service. If the seller is using a real estate agent and the property isn't getting proper exposure, find another agent.
Q: What is the difference between list price, sales price and appraised value?
A: The list price is a seller's advertised price, a figure that usually is only a rough estimate of what the seller wants to get. Sellers can price high, low or close to what they hope to get. To judge whether the list price is a fair one, be sure to consult comparable sales prices in the area.
The sales price is the amount of money you as a buyer would pay for a property.
The appraisal value is a certified appraiser's estimate of the worth of a property, and is based on comparable sales, the condition of the property and numerous other factors.