How much is my house worth?
The value of anything whether it is a house, car, or jewelry is largely determined by what the market is willing to pay. Typically the best way to arrive at this figure is through an expert appraiser who would have no vested interest in the value. Often times, our customers will contact real estate agents to help them arrive at this figure. But this can be a mistake. Some agents are skilled in accurately determining value, others are not. Unless you hire an appraiser to check their work, there is no way of knowing. One Spokanebyowner home seller had two different agents go through their home and present a market analysis. Both were top agents with documentation and comparables to back up their proposed price. The first agent proposed a price of $135,000. The second agent proposed a price of $90,000! The frustrated home sellers ended up hiring a state certified appraiser who determined the value was actually $125,000.
Home sellers not willing to pay for an appraisal should consider looking at recent sales in their area; generally within the last 6 months. They should objectively compare their home to those sold on the basis of condition, size and location. After they arrive at an initial value they could contact several different real estate agents to get a subjective opinion. Finally, they might consider looking at homes that are currently listed in their immediate area, remembering to check how long they have been on the market as an indication that those properties may be overpriced.
We have seen an increasing trend in the Spokane marketplace where some agents have been promoting the myth that "by owners" price their homes too high. Overpriced homes exist in both the by owner market and the Multiple Listing Service! The best solution to this issue is to have your property pre-appraised by a bank or state certified real estate appraiser with a great deal of experience in the type of property being sold. When showing the property to prospective buyers, make the appraisal available for the buyer to review.
