How can you be sure that a home is priced at fair market value? I’ll go over a few ways we make sure the list price is a fair one.
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One question we get asked pretty often is, “How can you tell a home is priced at its true value?” We make sure it’s listed correctly in several different ways.
First, we pull the sold comparables and really look at the homes in the area that have sold in the last three to six months. We compare the number of rooms, square footage, garage size, amenities such as granite countertops, flooring, and others to ensure we get a great comparison and a pretty precise fair market value.
When we go to submit an offer on behalf of a client, we want to make sure the price being submitted is a fair price and the client feels like they are getting a good deal. We also want to make sure we don’t run into any issues with the appraisal.
An appraisal is done to make sure the home is being bought at fair market value. If our true market value price is close enough to the appraisal, there won’t be any problems or delays that come up.
If the appraisal is higher or lower than our estimation, there is usually some negotiating that happens. Either the seller will drop the price to where the fair market value is, or the buyer will have to come up with some extra cash to purchase the house.
There are ways of working around a low or high appraisal, so you want to make sure you work with a professional real estate agent throughout the entire home buying or selling process.
If you have any questions, please don’t hesitate to give me a call or shoot me an email. I would be happy to help you!