Learn Best Practices for Determining the Market Value of Your Southern California Home

Learn Best Practices for Determining the Market Value of Your Southern California HomeOne of the first questions you’ll probably want an answer to if you’re thinking about selling your house is how much it’s worth. When you work with a selling agent, they can give you a general sense of the house’s fair market worth. Below is a list of some of the elements they will think about. Call Berkshire Hathaway HomeServices California Properties at 310-373-0021 if you’re ready to learn more about your options for listing your house.

Comps of recent sales will be taken into account

What comparable homes are selling for in the neighborhood is one of the most crucial elements in figuring out a home’s market worth. A Comparative Market Analysis, or CMA or Comp, will be used by your agency. This is a summary of recent sales in the neighborhood, along with data on the number of days the properties were on the market, their ultimate sales price, and other crucial information.

You can look up previous sales online if you are not working with an agent. The quantity of knowledge you will have about a residence will be constrained, though. For instance, a house a mile away from yours with an equivalent square footage and number of bedrooms ought to be priced similarly.

Yes, unless there is a significant problem with it (like a basement that frequently floods) or anything that makes it more valuable (such as a newly remodeled master bathroom). Your agent will have a better understanding of how your property compares to other previously sold homes.

If you choose to conduct your own research, be sure that any comparable properties you choose are between.25 and.50 miles from your house, were listed within the previous three months, and are roughly the same age as your house. Additionally, they should not exceed 10% of the total square footage of your house. Consequently, if your home is 2,000 square feet, you should only consider properties that are 1,800 to 2,200 square feet.

Stay separate from the competition

While getting a fair price for your property is something you want, price banding, a problem that can arise, is something you do not want to happen to your home. Price banding happens when a buyer decides to move up or down the scale to a less congested price point because they are overwhelmed by the sheer number of homes within a given price range.

Price banding can naturally occur when vendors attempt to outbid one another, but it can be detrimental to business. If you notice that there are 12 properties for sale between $270,000 and $274,000, followed by nothing until $290,000, then $280,000 may be able to generate more interest in your property than if you set your price within the other popular ranges.

Call Berkshire Hathaway HomeServices California Properties at 310-373-0021 if you’re ready to find out how much your house is probably worth. We can assist you in choosing the best course of action.