You have likely heard that the real estate market is going through some interesting times. If you know someone that has recently sold and/or bought a home, you are aware that home values have been rising for several years now. There are some facts as to why this is occurring, but more importantly is for current buyers and sellers to understand how real estate housing values are established and what it means to be a buyer or seller in this market.
First, a home’s value is determined by what someone is willing to pay for it. Therefore, the best way to know what someone is willing to pay for your house is to determine what buyers have recently paid for comparable houses. You have probably heard Realtors use the term “comps.”
This term refers to properties in a comparable location, with a comparable home style, and a comparable size. Estimated adjustments are then made for property condition and additional features. A Real Estate agent, such as myself, can determine what the estimated market value of your home is. This is a piece of what we call a Comparable Market Analysis (CMA). The CMA
is a critical aspect of establishing an appropriate price to list your house for sale. The closer you list your house to your home’s market value, the likelihood of a quicker sale is a reality.
Now that we have established how home values are established, let’s look at what this means in today’s market where buyer demand exceeds the number of houses on the market. As a seller who appropriately prices their home, expect your home to sell quickly in this market. Also, be prepared to receive multiple offers and work closely with your agent to evaluate which is best for
you. As a buyer, be prepared to schedule a showing through your Realtor soon after the home
you are interested in hits the market.
The current real estate market is an interesting one to navigate through and you will want to hire an agent that can deliver top notch business advice. So if you, or somebody you know, is
thinking about taking advantage of capitalizing in this market, contact me at 484-350-5481 or ahubley@zuberreatly.com today to discuss.
