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Aug 30

How to Determine a Fair Price for Your Home

Reading Time: 3 mins

A home is one’s comfort zone. No one likes to leave that comfort unless they have to sell the house for unavoidable reasons, such as a new job in another locality or in search of a better neighborhood. In such circumstances, you should know the basics of the house-selling process, especially how to figure out the best cash offer for your home. 

Determining an appropriate price for your home can be tricky since you’re emotionally involved with it. While it’s your right to receive a price of your liking, the price needs to be consistent with current trends and your neighborhood houses in order for the house to sell swiftly. The fastest and the most hassle-free way is to contact a home buying company, such as Leave the Key Homebuyers. They will be willing to purchase your place and provide you with a suitable cash offer themselves within 24 hours. However, if you want to do your research and reach out to other clients as well, here are some ways of doing so:

Online Tools 

One easy way of determining your home’s price is by using online tools, commonly known as automated valuation tools (AMV). Such AMVs include Zillow, Redfin, Trulia, or Eppraisal, which estimate your property’s value. These tools collect relevant data from public records such as property transfers, ownership deeds, and listing offers and estimate your home’s value via automated software. All you need to do is type in the required details of your home, and an assessment will be generated. However, since the algorithm is automatic, it may not factor in the real-time conditions, so there’s still room for error. 

Comparative Market Analysis (CMA) estimates your home’s market value by comparing it with similar properties recently sold within six months to one year. To do a CMA, you must thoroughly evaluate your neighborhood and its overall condition. Gather the basic information regarding your home, such as its square footage, age, and construction style. Then, look for similar homes, preferably within a one or two-mile radius of your home. Gathering the prices of such comparable properties will help give you a better idea of your home’s value. Don’t forget to factor in the differences between your home and other properties before estimating the final price.  

Current Market Conditions 

The real estate market fluctuates perpetually. Even if you carry out a thorough CMA, there is still a chance that the price you set will be either too high or too low. For this particular reason, you should stay up to date with the everyday market conditions. Staying on top of the trends will help you determine whether it’s a seller’s or a buyer’s market currently. The seller’s market is the situation where there’s low supply with high demand, giving the sellers an upper hand while buyers are at an advantage in the buyer’s market. Pricing your home according to the latest trends will help you determine the best price to get a swift and fair offer. 

Endnote 

Selling your home is a stressful and time-consuming task. All the hard work and time spent goes to waste if you settle for a below-average price or set too high a price that drives the buyers away. You should know your property’s worth and how you can get the best deal. 

To get a fair cash offer quickly, simply reach out to a trustworthy homebuyer company as they know the market well, saving you the hassle of analyzing the market and chasing clients. If you still want to estimate the price on your own, just use the ways mentioned above, and you’ll be able to determine your home’s suitable price! 

 

DisclaimerMoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence.

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