So many people are asking "what is the property value of my home?" or "how much is my house worth?" Coming up with this number is one of my specialties. Maybe you want to sell, maybe you want to refinance and take a little cash out for renovations, maybe you just want to take advantage of the historically low interest rates and lower your mortgage payment or maybe you are just curious. Whatever the reason, here's what you need to know:
In this market, houses are going for quite a bit over the listing price, so it is important for the agent you work with to do actual market research. What do I mean by that? I mean actually spend the time calling other local agents that have houses under contract.
There are a lot of agents that do a market analysis of the value of your home based on active and recently sold homes in the last 30-60 days. One year ago, that was sufficient. But now, as of the end of February, with average houses being on the market for less than one day, boasting 10+ offers, and executing contracts for well over the listing price, agents need to know as many of the details of those contracts as the other agent is willing to share.
Why relationships matter
The MLS - multiple listing service - does not show any of the terms or the offer price until the sale is closed. So in order to get this information, the best realtors will utilize their relationships and get the most up to the minute information they can. How high was the offer, what were the terms, was there an escalation clause, was there a leaseback offered, who paid for title, etc.
For sellers, this type of information is just as useful as knowing the price tag on your home. It allows you to understand the terms that are being offered and whether or not they're in your favor. This will also give you an idea of how many people may come through your home during the showing portion of your sale and tell you what you may be able to expect from the buyers in your market in regard to their buying power.
For refinancers, you need to know if appraisals are coming in below, above, or at the value of the offer price. Why? Because your refinance will likely depend on an appraisal of the value of the home by a 3rd party. The better the appraisal, the more equity you've gained.
Now, here is something neat that you should chat with your lender about if you still pay mortgage insurance. Homeowners pay mortgage insurance when the loan has more than 78-80% loan to value (LTV) ratio. If the appraisal comes in significantly higher than when you purchased the house or last had it appraised, there is a major opportunity for the appreciation of your home to bring your ratio below 78% LTV. This change in value would immediately require conventional lenders to drop the mortgage insurance, saving you hundreds each month. If you are in an FHA loan, you might be thinking but mine stays on forever, well, not if you refinance into a conventional loan! Talk to your lender. If you don't have one, I have several and will get you in contact with the cream of the crop.
All that to say this
You need an agent who is willing to go to work for you. Someone who will go the extra two miles to make sure you get every penny's worth of value out of your home.
I am that agent, and if I am not in your market and you found this, I will find you "that agent" where you live. It takes one to know one, ya know? I realize that I probably sound bias here, but now more than ever it is imperative that you work with real estate professionals to purchase or sell a home. There are still hardworking agents across the nation that will earn every dollar of commissions that you'll spend, and I believe with all my heart you won't miss a dime when you get way more than you expected because someone took the time to get the value right!
If you'd like to know the value of your home for any reason, please send me a message. I can get you an answer within 48 hours.
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