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The Top Factors That Determine Home's Worth
Tuesday, September 20, 2011
The cry sell my house is more prevalent today than ever, and there are more factors than ever that determine your home’s true value.
1.Zillow is a web site that tells realtors, buyers, appraisers, and mortgage companies what your house is worth; or at least, what Zillow thinks its worth. Zillow uses a “proprietary algorithm” to determine the value of nearly 100 million homes without ever seeing one home.
2.Houses like your house that are for sale in your neighborhood are referred to as comps, and they will also set the value of your house. However, if a similar size house is not as updated as your house, the comp should just be a consideration in assessing the true value of your house. What really matters are the selling prices of similar houses. Often, the disparity between the asking and selling price can be 5, 10, or even 15 percent depending on the market. Houses sold in August, 2010 would likely have sold for more money than they sold for in August, 2011. The market was influenced by several negative factors in late 2010, so the August, 2010 selling prices would not be an indicator of true value in many cases.
3.Number of days on the market is another indicator of the true value of your house, and it is a measurable used by realtors and appraisers. Many houses can be sold within one week if the price is really attractive. Similarly, many houses can languish on the market for months if the owners insist on selling a Detroit house for a New York City price.
4.Sales transactions timing is also an indicator of the value of your house. If houses were selling faster a year ago and for more money, the buyers are likely to argue that your neighborhood is losing value.
5.Appraisals are a sensitive area of the real estate sales market today. Appraisers have come under severe criticism for overvaluing property. They tend to be more conservative today in a market that is bad enough without this factor.
6.The number of foreclosures in the neighborhood or town will affect your house’s value. If a buyer can get a house like your house for 30 percent less, what would be a good argument not to?
7.The number of empty homes with overgrown yards will definitely affect the value of your house and the length of time it stays on the market.
All of these factors influence the result sell my house.