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Knowing the Value of Your House

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By : Rose B    99 or more times read
When you want to sell your house, you need to set a competitive price, so that you do not jeopardize your chance of a gain, or end up having your property stand so long on the list of for sale houses.

You may know of the square foot pricing system, or simply, the cost of each square foot of your house based on the buying price of those houses which are sold most recently. This is considering their close similarities in location, style, and engineering or architecture. However, the process is not as easy as you think.

It may be good to estimate the value of your house on your own for comparative purposes, but after that, it would be best to obtain a CMA from a real state agent, as they have the complete list of the needed data. CMA or Comparative Market Analysis is the term for the written analysis of real estate agents of the supposedly competitive value of your house. It comes similar to a report. It is often offered for free by a real state agent, maybe because of the hope of authorizing them to sell your house. You can have an option of having CMAs from different agents for your comparison also.

There are few steps involved in making a CMA. First, an agent would walk into your house for a personal assessment. They can also recommend ways by which you can increase the value of your home before selling, so you may take that into consideration also. After that, the agent will research houses sale information most often for the past 12 months. This includes the sold houses, pending sales, active listings, and even the expired listings.

From those data, he then comes up with the CMA with the suggested selling price. This comes usually as a range and not a specific one. This gives you option of how much can you risk to go lower with the thought of having your house sold in a shorter time. It could also be a guide for you on how much can you add up to make a profit, not risking its chance to be sold.

Another option is to hire a professional appraiser. This service may cost from $300-$450, but be sure to check that they come from a reputable company for an expert's service. For sure, you do not want to hear an overly hype one because after that, and you fall into a headache on selling your house, you may end up thinking that you were misled. In the first place, you aim to hear the accurate value of your house.

Take note that you may not need to calculate the value of your home to refinance mortgage as home loans may also find it less important to have a strictly right figure for your home. This applies more on those who wish to sell their house, or to the property owner. These are just a few of the many things to consider in pricing your house. Nothing is stable in the housing industry. Like other fields of the market, price is controlled by emotions.

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