Use Value Estimates To Find The Right Price
If you want to sell your house but have trouble determining the right listing price for it, try a home value estimate (HVE).
This is generally done when people want to put their home on the market but have no clue about the current market value of their property. If this is also your case, you can start by having a home value estimate or an HVE. This automated report takes into consideration public databases and complex algorithms to arrive at an estimate of your home's value on the market.
However, you should not mistake an HVE for a Competitive Market Analysis (CMA). A CMA is performed by an agent and is based upon recent sales figures for comparable homes in your neighborhood combined with your agent's expertise. The two figures may not coincide, as the HVE also draws on sales statistics and relies on public records. Although it may not indicate the exact value of your home, the HVE is still a good way of getting an idea of price.
Here are some advantages related to home value estimates:
• Easy to use, generally requiring just your address or similar information
• Usually low-cost or even free, depending on the consistency of the research and the amount of time you are willing to wait for the report
• Can offer you data which is not part of the CMA, such as descriptions of similar properties in your area, house information, its tax value and other community features (e.g. price trends, demographics)
• It's not based on a person's judgment, therefore it can be more objective than a comparative market analysis which requires the input of your agent
The drawbacks of home value estimates:
• It doesn't always reach the best conclusions, because it fails to take into account features like improved finishes, which an agent would certainly consider
• It is based on public databases, which can contain inaccurate, unreliable or incomplete information
Given the pros and cons of this estimate, you can have both an HVE and a CMA, all the more as they are usually free or inexpensive. However, you should make a comparison of the two results when you are coming up with your listing price. If the results are in close range, you have a good indicative of what your price should be. If they are completely different, ask your agent to explain to you why.
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