When you go to sell your Tuscaloosa home, your number one question is usually “how much money will I make of the sale?” For most sellers, the next step is to hire a great local real estate agent and tell them, “I want as much money as possible!” And that’s where things can go wrong and cause you to miss out on potential cash in your home.
You see, most agents will price your home by pulling a list of all homes that have sold in your neighborhood within the last year. Then, they’ll compare your home’s features such as beds, baths, square footage and the like while adding and subtracting from the top prices homes sold for to arrive at the price for your home.
Agents rely on this method (called the Comparative Market Analysis, or “CMA”) because it’s the foundation that appraisers use to determine their appraised value which is, in turn, what lenders will go by when determining the amount they’ll loan on a home (by what it’s worth). That said, it’s not the ONLY factor that goes into an appraisal.
One of the other big factors appraisers consider is the actual location of your home and it’s immediate area. In other words, what are homes currently selling for an how much have they appreciated since their last sale? So, to truly do a better job of guessing where the highest price may be, you have to know about recent sales, homes listed, and appreciation trends for the neighborhood.
Most importantly, when a lender tasks an appraiser to value your home so they can decide what to lend on the home, the question they’re really asking them to answer is:
Is the home worth the exact amount the buyer and seller have agreed upon in the form of a signed contract?
In other words, the bank isn’t asking an open-ended question about how much the home is worth but instead is really asking “Please tell us if the home is worth the $127,500 the buyer has agreed to pay and we want to loan money on.”
This is very, very important because it means you REALLY need to get your highest possible price right the first time. Why? Because the bank will only consider whether or not the home is worth what you got a buyer to agree upon in a signed contract.
By meeting with your agent and using a tool like www.moneyinmyhome.com to find out what high-end price you may be able to get for your home taking into account data on how well your area has appreciated in the last 12 months, you can both use our instant, online price estimate along with your agent’s CMA to get to exactly your best price.
Do a Better Job Setting Your Highest Possible Home Price
Here at MoneyInMyHome, we make it easy for you to see what you may be able to get for your home with an estimate that includes your neighborhood’s percentage of appreciation in value for the last 12 months. When you enter your home’s address, we show you what Zillow says your home’s value should be, then we calculate – amongst other factors – how much your street and neighborhood have gained in value over the last year.
It’s a good way to make sure you don’t cheat yourself out of any money on the sale of your home. Try it out now here for FREE!