List It With Me
Every Real Estate Agent will say the same thing, “List it with me.” With the market shortage of new listings, most agents are spending the majority of their time trying to find houses to sell. Many people have been waiting for the market to turn around, with the hope that their home will return to the value it was purchased at before they sell. It is important for home owners to have an understanding of how their home value is determined. There is a process that is used by real estate agents in Southern Utah called a CMA. This is the acronym for “comparative market analysis”. The process is accomplished by researching houses that are currently for sale in the St George area, and houses that have sold in the St George area.
“Sure You Can Get That For Your House”
Since the home seller actually sets the price their home will sell for, their is a lot of room for error. If a real estate agent really needs a listing he may allow the home owner to believe their home is worth more than it might really be. This may truly be unintentional. It is difficult as the majority of home owners believe their home is worth more than it really is. After their home has not had any interest for a few months, the agent will general suggest they reduce their price. It is almost a law of nature that anything will eventually sell, once it reaches the price that it is really worth.
St George Home Values
The price of homes in St George are definitely moving upward. This can lead the highly optimistic agent and anxious home owner to “over price” a home. This creates a problem later down the road, if the homeowner actually gets an offer on the home for more than it will appraise for. Unless the home appraises for the sales price, the deal will usually not fly. This is because most of the people buying homes will be getting a loan, and loans require an appraisal. Appraisers use the same database that real estate agents use to gather data to determine the value for a property. This means that an agent should be able to estimate fairly closely what a house will appraise for.
Can Your House Compete?
A good analogy for home values can actually be illustrated by a look at the auto industry. When a person prepares to purchase a car they will research what kind of cars are available in the price range they are interested in. With access to home values on the Internet, potential home buyers have a good idea of how much they will need to pay for the type of house they want. If they are looking at houses in the same price range as yours, these homes, are your homes competition. In other words if your house is very similar to another house priced at $250,000, and you are asking $275,000, chances are your house will not sell. Home buyers in Southern Utah are extremely savvy when it comes to house prices. This means that a home needs to be priced properly to sell in today’s market.
