How Do You Determine the Value of My Home?

By
Real Estate Agent with Benchmark Realty, LLC (615) 495-0752 or www.TWRealtyGroup.net TN License #315195

How do you determine the value of my home?

Buyers comparison shop today when buying a home. In fact due to the internet, buyers have more access than ever to information to determine the value of your home. They'll not only be looking at the asking prices of homes in your market but also the selling prices of recent homes. You should be doing the same. 

The best way to determine the current value of your home is to have a licensed REALTOR perform a Comparative Market Analysis. There are three categories of home prices that should be used to determine the best sales price for your home.

1. Active Listings - These are the current homes for sale in your neighborhood or market.

2. Closed Home Sales - These are the homes that have most recently sold in your neighborhood or market.

3. Expired Listings - These are homes whose listing expired in your neighborhood because they did not sell.

In a normal selling market, your home should be priced at the top of the most recent closed sales and at the bottom of the homes currently for sale. If you price at the same price where other homes expired, then your home will remain on the market and eventually will expire as well.

To receive the best sales price for your home in the least amount of time, you must price your home at market value from the beginning.

Remember, your REALTOR's job is to sell your home not price it.Pricing Your Nashville Property He doesn't determine the value of your home--the market does. Similarly, the best marketing and exposure in the world won't sell an over-priced home.

The Comparative Market Analysis gives you the reality of the market so you can make an informed decision.

Market trends will definitely influence your pricing strategy. The worst thing you can do is price your home high in a declining market. The result will be that your home will stay on the market for a very long time.

Sellers will often price their home in relation to what they paid for it. Don't make this mistake. There is absolutely no relationship between the price you paid for your home and the current market value.

If you are looking to sell your Nashville property and would like to receive your free Comparative Market Analysis, please contact Tammie White at (615) 495-0752.

 

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Copyright © 2011 By Tammie White, All Rights Reserved.*How Do You Determine the Value of My Home*
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************************************************************************************ 
 
Tammie White, REALTOR®
TW Realty Group
Benchmark Realty LLC
318 Seaboard Lane
Franklin TN 37067
(615) 495-0752 Direct
Email: Tammie@TWRealtyGroup.net
 
 
This posting with the content written here and photographs displayed are the intellectual property and opinions of Tammie White of Benchmark Realty LLC. Any party who uses this material without the permission of Tammie White is subject to copyright infringement and possible lawsuit.
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Show All Comments
Rainer
210,374
Joe Kenny
Realty Executive Midwest - Darien, IL
Better Than Your Average Joe

One of the values a Realtor brings to the valuation process is knowing and I mean truly knowing the market.  I can show you three closed comps and three actives on paper but when looking at the raw data can you tell me which one of the properties was involved in a triple murder and is now stigmatized?  That is why our  roles are so important.

January 13, 2011 08:21 AM #5
Rainer
49,448
Craig Reeves
Keller Williams Realty Jupiter - Jupiter, FL
HIGH Information...NEVER High Pressure

Tammie,

 

Nice post. I agree with your post and your follow up comment as well.

"Similarly, the best marketing and exposure in the world won't sell an over-priced home".

How true!

January 13, 2011 08:25 AM #6
Rainmaker
487,038
Lorraine or Loretta Kratz
Crescent Moon Realty, Inc. & Land N Sea Auctions. - San Marcos, CA
Certified Negotiation Consultants

No matter how you slice this equation the bottom line is motivation. if the seller is in denial about the market it does not benefit a real estate agent to promote there illusion by taking a listing where there is no motivation and usually pricing reflects how motivated the seller is to get his/her home sold.

January 13, 2011 09:23 AM #7
Rainmaker
507,095
Patricia Aulson
BERKSHIRE HATHAWAY HOME SERVICES Verani Realty NH Real Estate - Exeter, NH
Realtor - Portsmouth NH Homes-Hampton NH Homes

Good post today, thanks for getting it out to us today.  I think it would be good for all sellers to read this post when marketing their property. 

Patricia/Seacoast NH & ME

January 13, 2011 10:04 AM #8
Rainmaker
233,347
Mark Montross
Catamount Realty Group - Burlington, VT
Listing and Buyer Specialist

Tammie - excellent post. I agree with you about using the expireds as a gauge, I do the same thing.

January 13, 2011 10:12 AM #10
Rainmaker
229,684
Jean Hedren
Edina Realty, Inc. - Gordon, WI
NW Wisconsin Homes for Sale

Tammie, the key statement for me is that it's the Realtor's job to sell the home, not price it; value is determined by the market. This is what sellers need to understand. Thanks for your post.

January 13, 2011 10:25 AM #11
Rainmaker
222,832
Jim Gilbert
Samson Properties - Manassas, VA
The Golden Homes Team

Actually, as bankruptcy trustees, probate attorneys, and family law lawyers will attest - based on their own practices - the safest, must defensible market value obtainable for a home (will stand up in court) comes from an honest to gosh, state licensed APPRAISER.

Note I am not an APPRAISER, but both my broker owners are.

Agents tend to focus on sales price.  Market value is a different concept.

January 13, 2011 10:37 AM #12
Rainmaker
409,641
Michelle Francis
Tim Francis Realty LLC - Atlanta, GA
Realtor, Buckhead Atlanta Homes for Sale & Lease

Tammie, 

So true, the worst thing a new seller can do is price it high to give it a try in a declining market and then end up getting less than the first low number they didn't like when this process started. 

All the best, Michelle

PS - Can always suggest they get an appraisal to start prior to listing!

January 13, 2011 11:14 AM #13
Rainmaker
106,679
Traci Ferguson
San Luis Obispo Realtor & ecoBroker with Patterson Realty - San Luis Obispo, CA
Realtor, EcoBroker, LEED AP

Tammie. these are all words to live by.

The market determines the property price and value is so true. I can't stress it enough to my sellers. Thanks you for the great post

January 13, 2011 11:24 AM #14
Rainmaker
217,003
Chris Sloan
Group 1 Real Estate - Tooele, UT
Tooele Utah Real Estate

We have to use active listings as a tool. You have to know where your competition is, or you're doing not painting the whole picture. Great post!

January 13, 2011 11:31 AM #15
Rainmaker
261,379
Franklin & Brentwood, TN Homes Mike Nastri - Rodney Kennedy
Keller Williams Realty - Franklin, TN
It matters to us as much as it matters to you.

Good post Tammie, it is just common sense but when it is our house emotions get in the way.  Our house is only worth what a buyer is likely to pay.  And if they have good Realtors, they will pay what is in line with what has sold in that market.

January 13, 2011 12:05 PM #16
Rainer
57,680
Bradley Pounds
Watters International Realty, Broker Lic #606049 - Austin, TX
(512) 736-3353

Expireds and Withrdrawns are important to show prospective sellers.  Many agents don't look beyond active and sold when prepping the CMA price.

January 13, 2011 02:55 PM #17
Rainer
6,110
Collin Vold
Keller Williams Realty - Blaine, MN

Tammie, great post! I use expireds as an excellent gauge as well. Just "Sold" and "Active" don't paint a very accurate picture.

January 13, 2011 03:38 PM #18
Ambassador
1,167,208
Tammie White
Benchmark Realty, LLC (615) 495-0752 or www.TWRealtyGroup.net - Franklin, TN
TW Realty Group, Franklin TN, South of Nashville

Michael - If we don't tell sellers this, no one else will.

Dawn - Oops forgot that one. But yes I do include that info as well when I meet for a listing presentation.

Joe - Isn't that why people use us because of the knowledge we possess?

Craig - This is probably the hardest thing for sellers to understand. If they are priced too high, they won't get showings. If the condition of the listing is good and the MLS photos accurately reflect that and there aren't any showings, it's usually related to price. 

L & L - Absolutely, we don't create the market conditions. If sellers are in denial, their home probably isn't going to sell.

Patricia - Wouldn't that be nice?

Mark - We have to. It tells us what else hasn't sold and usually we can deduce why.

Jean - I agree.

Gold Team - Even if we do get an appraisal to price the home, that appraisal may be obsolete in three months.

Michelle - I call this the "Kiss of Death". If sellers insist on pricing high, then they set themselves up for a lot of disappointment.

Traci - Thanks for stopping by.

Chris - So true. Try telling a seller it doesn't matter what the home next door is priced at. It matters to him. But if that home is priced high, he can see that from the other active listings. Exactly why we want to provide that information.

Mike - If a buyer won't pay the price, it's not going to sell.

Bradley and Collin - I want to know everything there is to know about a neighborhood when I go to a listing appointment.

 

January 13, 2011 03:56 PM #19
Rainmaker
561,149
Corinne Guest
Barrington Realty Company - Barrington, IL
Barrington's Country Suburban Home Matchmaker

I disagree with the active but real estate is very local and might be beneficial in your area. Here a seller would take them as the ones to use when they should only be looking at solds. If there is only one comp sold then so be it.

January 13, 2011 04:45 PM #20
Rainmaker
338,628
Karen Feltman
Cedar Rapids/Iowa City, IA Skogman Realty - Cedar Rapids, IA
Relocation Specialist

I think that the pending listings are more telling of where the market is truly going, even more so than the current active listings.  Especially the days on the market for those pending listings.  I use sold data that is no more than 60 days back, if there are no sold comparables in the immediate area, I choose another area that is similar.  Too much can change in a couple of months, so going back further for sold comparables does not always make sense.  I do not really use the expired listings at all, but if there is a high occurence of them, I could see where you might want to consider them after gauging their condition. Great information!

January 13, 2011 07:26 PM #21
Ambassador
1,167,208
Tammie White
Benchmark Realty, LLC (615) 495-0752 or www.TWRealtyGroup.net - Franklin, TN
TW Realty Group, Franklin TN, South of Nashville

Corinne - Sellers here expect that we're going to look at the active listings. That doesn't necessarily mean where we'll price it. It usually shows us where we don't want to price it. If the seller is looking to price his home at $350,000 and his neighbor with a similar home is priced at $350,000 and has been for 262 days, that's not where we want to be. In terms of the sold comps, I don't have a problem with the number of sold comps as much as I do with when they sold. A comp that is more than 60 days old, doesn't really help much.

Karen - If pending sales are available, they do give us a good indication. Unfortunately, pending sales aren't always available.

January 13, 2011 09:10 PM #22
Rainer
160,298
Jim Shaw
Premiere Plus Realty Co. - Naples, FL
Real Estate Sales Associate, Naples Luxury Real Estate

Great post Tammie,

How do you treat distressed sales in the CMA?

 

 

January 14, 2011 08:26 AM #23
Rainer
93,733
Vince McEveety
Gilleran Griffin Realty - Sherman Oaks, CA

thanks for the post

a lot of great ideas and thoughts

cheers to you

January 14, 2011 01:24 PM #24
Ambassador
1,167,208
Tammie White
Benchmark Realty, LLC (615) 495-0752 or www.TWRealtyGroup.net - Franklin, TN
TW Realty Group, Franklin TN, South of Nashville

Jim - We're not experiencing a whole lot of distressed sales in this market so the condition of the property usually plays a factor. Obviously, if you have a lot of distressed sales in a neighborhood that is going to effect the value.

Vince - Thanks for stopping by.

January 14, 2011 01:49 PM #25
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1,167,208

Tammie White

TW Realty Group, Franklin TN, South of Nashville
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