Figure Out Your Home's Value

In today's unpredictable real estate market, it can be a challenge to figure out just how much your home is worth. However, with the help of an experienced real estate agent, you can figure out the value of your home and make sure the price is right.

Whether you want to put your house on the market, refinance or simply figure out how much your house is worth, here are a few ways you can determine the value of your home:

Look at comparables Talk to a real estate agent and ask them for info on comparable homes in your neighborhood. Even if you're not planning to list your house right away, a realtor may be willing to put together a free comparative market analysis (CMA) for you.

A CMA is a report that tells you how much your home is probably worth. As a seller, you can use the information from a CMA to figure out the most appropriate listing price for your home. These reports generally include the following info:

• Active listings: These are the homes that are currently for sale in your area.
• Pending listings: These are formerly active listings that are under contract but have not yet closed.
• Sold listings: This includes homes that have closed within the past six months in your area. The sold listings are very important because they will help you determine your market value, which will in turn help you figure out the best listing price. These are the comparable sales that an appraiser would use when appraising your home.
• Off-Market, Withdrawn or Canceled listings: These are properties that were taken off the market for one reason or another. Generally, sellers take their homes off the market because the asking price was too high. These listings may give you an idea of how much is too much to ask for your home.
• Expired listings: These are the listings that did not sell within a certain amount of time (generally 90 days), so they ultimately expired. These listings generally represent overpriced homes, as well.

Evaluate the homes on the list that most closely resemble the size, age and condition of your home and see how much they are selling for. This will give you a good idea of how much your home is probably worth.

Get an appraisal You can pay a certified appraiser to determine the value of your home. Although appraisals are not free, it may be worth the cost. That's because appraisals are generally more accurate than a simple CMA evaluation. An appraiser takes many factors into consideration, including the condition of the property, comparable sales in the area, projections for future value, any extra upgrades or additions the home may offer.

Search online

Do some online research to figure out the approximate value of your home. There are many websites out there that will help you figure out the value of your home for free or a small fee. To find housing statistics for the entire nation, visit www.census.gov

Choosing a REALTOR®: Find Your Perfect Match

If you're ready to put your house on the market, you'll want to find the most qualified real estate agent who will meet your unique needs. Here are a few tips to help you find your perfect match.

Look for a Realtor® Believe it or not the words "agent" and "realtor" are not interchangeable. A real estate agent is licensed in the state where they work. Licensed agents are required to meet certain education and experience standards.

However, a Realtor is a step up from an agent. After they receive their real estate license, most agents join their local board or association of REALTORS® and the NATIONAL ASSOCIATION OF REALTORS®. Only then can they use the title, REALTOR®. Real estate professionals who are REALTORS must adhere to a strict code of ethics which oftentimes surpasses state laws. Also, many REALTORS have achieved a higher degree of training and experience than a typical agent.

Ask for recommendations Ask your friends, family members and colleagues if they can recommend an excellent realtor. However, be sure to ask them if they would work with the agent again. If the answer is yes, then you may have found your ideal agent. You may also want to call a few highly regarded real estate firms and ask if they can recommend realtors who work in your area.

Conduct some interviews As a seller, you should interview at least three different agents before you make your final decision. Each agent should give you a comparative market analysis of home prices in your local area and tell you how he or she works with clients.

Here are some more questions you should ask each potential agent:

1. Are you a REALTOR®?
2. Do you have an active real estate license in good standing?
3. Are you a full-time real estate agent or is this a second career?
4. Who will you be representing? Me or the buyer? (The agent should explain the definition of agency in your state so you understand your rights.)
5. How can you help me accomplish my home selling goals?
6. What kind of marketing do you plan to do to promote my home?
7. How much do you think I should ask for my home?
8. Do you belong to the multiple listing service (MLS)?

Find the right fit After you have interviewed three or more agents, choose the pro that seems like the best fit for you. Remember, the agent who wants to list your home for the highest price is not necessarily the best choice. Sometimes, agents will say you should list your home at an inflated price just to win you over. Then, they end up telling you to lower the price later when your house doesn't sell. Instead, choose an agent who is experienced, realistic, honest, hard-working and straightforward.

The Price is Right. Or Is It?

When it comes to selling your home, one of the single most important factors is your listing price. The listing price can make or break the sale of your home. Unfortunately, pinpointing the perfect price is easier said than done. While you may assume you can just look at how much you paid for your home and then mark it up a little, there's a lot more to this numbers game.

However, with the help of an experienced real estate agent, you can make sure the price is right. Here are few ways you can find the best listing price for your home:

Look at comparables in your area When you're on the lookout for a real estate agent, invite at least three agents into your home and ask them for a comparative market analysis (CMA). A CMA is a report that shows the prices of comparable recently sold homes, on-the-market homes and homes that were on the market but didn't sell in your area. Evaluating these numbers will help you determine a realistic listing price for your home.

Once you put your house on the market, ask your real estate agent for frequent comparable updates. If other homes in your neighborhood are selling for much less than your asking price, it's probably time to lower your listing price.

Don't overinflate the price Far too many homeowners make the mistake of starting off with an inflated listing price, assuming they can adjust the price later. This tactic almost always backfires. Generally, homes get the most attention from agents and potential buyers for the first 30 days after they are put on the market. That means you have a 30-day window of opportunity to catch their eye. Don't waste those four golden weeks testing the waters with an overblown price tag. It's best to get the price right the first time around.

Know the warning signs If your house has been sitting on the market for a couple of months with little interest, it may be time to cut your asking price. Some experts say if you've had 10 showings without an offer, your home is probably overpriced. However, don't lower your price in small increments. If you're going to bring down the asking price, you need to lower it by at least $5,000 to catch the attention of prospective home buyers.

Go to open houses in the area Check out open houses in your area and find out how those homes measure up against yours. Pay attention to homes that closely resemble yours in size, age, amenities and condition. Find out their listing price, and this may give you a good idea of how much you should ask.

The Truth About Appraisals

If you want to determine how much your home is worth, an appraisal could be the perfect solution. In an appraisal, a certified appraiser looks at a number of factors to determine the value of your home. Although appraisals are not free, it may be well worth the cost. That's because an appraisal is one of the most accurate ways to figure out the value of your home.

However, many homeowners still have many misconceptions about appraisals. Here are five things you may not know about the appraisal process:

1. An appraiser's primary mission is to protect the lender. While many people believe an appraisal simply assures that the buyer does not pay too much for a home, this is not the case. An appraisal is generally a protection measure for the buyer's lender, not the buyer. This is why the appraisal generally takes place before lender gives final approval of the buyer's loan.
2. Appraisers don't pay too much attention to cleanliness of a home. While it's certainly a good idea to straighten up before the appraiser arrives, appraisers don't pay too much attention to smudged mirrors or dusty furniture. They are generally looking for more serious forms of neglect, such as cracked walls and ceilings, torn carpet, broken windows, busted appliances and damaged floors.
3. Appraisers must be licensed. According to federal law, real estate appraisers must meet certain standards and educational requirements to be licensed.
4. An appraisal is not the same thing as a home inspection. While an appraiser determines how much a home is worth for the lender, an inspector informs the buyer about the overall condition of the home and any potential problems.
5. Appraisers consider many factors to determine the value of the home. The appraiser looks at the condition of the property, comparable sales in the area, projections for future value, any extra upgrades or additions the home may offer, the size of the home, the location of the property, the size of the lot and even the home's proximity to desirable schools and other public facilities.

Make Sure Your Agent is on YOUR Side

When you decide to put your house on the market and start speaking to potential real estate agents, one of the first questions you should ask is, "Who will you represent?"

It may seem like a silly question to ask, but it's an extremely important topic of conversation in this day and age of real estate. Who the agent represents in a real estate transaction is also known as the issue of "agency"-and this issue is perhaps one of the most important topics in real estate today. That's because the way real estate agents represent consumers is changing rapidly and increasingly complex each and every day.

So, before you work with a realtor, make sure that he or she is there to represent you, the seller. Once you have established that fact, you can develop an honest working relationship.

Why Sellers Need a REALTOR®

Believe it or not, a REALTOR® is not the same thing a real estate agent. A real estate agent is licensed in the state where they work. Licensed agents are required to meet certain education and experience standards.

However, a Realtor is a step up from that. After they receive their real estate license, most agents join their local board or association of REALTORS® and the NATIONAL ASSOCIATION OF REALTORS®. Only then can they use the title, REALTOR®. Real estate professionals who are REALTORS must adhere to a strict code of ethics which oftentimes surpasses state laws. Also, many REALTORS have achieved a higher degree of training and experience than a typical agent.

In other words, realtors are trained, skilled experts who can help you sell quickly and get the best price for you home. If you're planning to sell your home, don't go at it alone. Here are just a few reasons why you need a realtor on your side:

• Realtors are educated and experienced. The real estate business can be complicated and frustrating. If you're working with a pro, you won't have to know all the ins and outs of the real estate business.
• Realtors act as a buffer. If you try to sell by owner, you'll have to deal with all the phone calls and emails from potential buyers first-hand. However, if you work with a realtor, he or she can filter out the casual home-shoppers and make sure that only serious buyers are coming to look at your property. This will save you loads of time and headaches.
• Realtors have insider info. A real estate pro can gain access to the most recent home sales stats in your neighborhood and give you insider information on competing homes in your area. They can help you make sure the price is right on your home.
• Realtors are master negotiators. Because real estate pros are skilled at the art of negotiation, they will be able to negotiate the best price for your home. When you start receiving offers, your realtor can help you put together strong counter offers.
• Realtors are not emotionally connected to your home. It's often difficult for a home owner to sell their own home because their emotions get in the way. A realtor can offer you and objective, educated opinion about your house listing and ensure that you make the smartest decisions.
• Realtors handle all the paperwork. A purchase agreement can be 10 pages or longer, and that does not include the disclosures. One tiny mistake could cost you thousands of dollars or even land you in court. A real estate agent can handle all of this confusing paperwork for you, and they'll make sure all the information is absolutely accurate.

Selling or buying a home is the largest financial transactions most consumers will ever face. Don't attempt to tackle this daunting challenge on your own. With a knowledgeable expert at your side, you'll feel confident knowing that, together, you'll make all the right decisions and sell your house for the best possible price.