What's My Home Worth?

Back in 2005 it seemed impossible to think of housing prices going down, leastways not for any extended period of time. But in 2006 and 2007 that is exactly what happened. As the housing market looked to recover in early 2008 a financial crisis of global proportions again caused prices to tank and by 2009 most people had resigned themselves to the conclusion that housing prices could go down – and stay down.

Most of 2009 continued with that negative trend, but in the second half some rays of hope began to emerge. Finally by late 2009 some actual year over year increases in sales of homes gave credence to the long awaited recovery. Many people who merely wanted to “flip” a home or two back in 2005 have gotten pushed out through foreclosures or fire sale prices. Many more found themselves “upside down” on their home – owing more than they could get for selling the home. And millions of discouraged homeowners who might want to move, but were not forced into a move through life changes beyond their control - simply gave up.

Now, with clear year over year increases in many areas, it may be time to revisit the value of your home. A qualified Home Value Report, also known as a Competitive Market Analysis or CMA, is a crucial step towards selling your home. First you should be aware that an appraisal attempts to determine the market value of your home and a CMA or Home Value Report is not an appraisal. Appraisals are typically done after an offer has been presented and often at the request of the lender. But nothing prevents a homeowner from paying for an appraisal and having their home appraised prior to putting it on the market.

Most people, however, will opt for the Home Value Report. So what should you look for in a Home Value Report?

To this point we have used CMA and HVR interchangeably. Let us now distinguish the difference. The HVR, or Home Value Report, references a quick look at homes that have sold or are for sale in the area. Everyone has heard the age old saying that the three most important factors in real estate are location, location and location. As such looking at sold properties within a specific geographical region, such as a ZIP code, as demonstrated here, can be a valuable tool. This is a quick and easy tool that the homeowner can use on his own to get a very general/generic idea of activity in a specific region.

The Snapshot CMA takes this a step further and requires the assistance of a qualified agent. Instead of looking at a broad range of properties that sold recently, the Snapshot CMA distinguishes itself from the Home Value Report by zeroing in on your specific property. The actual property location (as opposed to just the ZIP code), the actual square footage and acreage of the property and other property specific factors are taken into account. This allows a qualified agent to narrow the results of sold, active and expired properties in the neighborhood and provide a much better idea of the homes’ value.

So what is the difference between a Snapshot CMA and a Full CMA? Typically the Snapshot CMA will not make a specific suggestion for the listing price of your home. In order for an appropriate listing price recommendation to be reached the agent must speak with you about your timeframe for selling and the agent will also want to see the property in question to better determine if there are other factors that might alter the listing price.

When you speak with the agent about your timeframe for selling the agent will be looking for a maximum and desired time to market. The closer your desired timeframe for selling is to the actual ‘time to market’ figure for your specific home type, the fewer listing price adjustments need to be made. The longer the timeframe, the more likelihood there is that you can obtain a better value for your home – except possibly in a declining market. And if your timeframe for selling is significantly shorter than the typical absorption rate for your property then you must be prepared to offset this shorter timeframe by lowering the price appropriately.

When an agent understands your timeframe for selling and is willing to put forth the time and effort to conduct a Full CMA you have a better chance of selling your home under more favorable conditions. The agent should continue to watch the absorption rate for your property and other factors, and you should continue to communicate any changes to your timeframe for selling to the agent so that you can both respond to an ever changing marketplace. While there is never a guarantee that the home can be sold, their typically is no cost to you unless the home sells. The agent, however, will likely spend a significant amount of time and money towards your goal of selling the home. As such the agent wants you to obtain maximum value for your home, but must also weigh all factors fairly as no one is done any favors by putting a home on the market at such a high price that it has little if any chance of selling. While the agent’s listing price recommendation is only a suggestion and the final listing price is up to the homeowner, the agent may decline to take the listing if he feels the requested price is unreasonably high.

With 2010 looking more and more positive for homeowners now may be the time to contact a qualified, licensed agent, sit down with that agent and review a Full CMA so that you can take advantage of any positive advancements in the housing market in the near future! If you live outside of North Idaho you can still obtain a professional referral to an agent near you at no additional cost to you!

When only the best will do the answer is clear:

Tomlinson North Idaho

Sothebys International Realty

www.BestHomesandLand.com/public/homevaluereport.html

BEWARE THE ONLINE OR THREE CLICK CMA!

Quick online CMA's use outdated data and often times are largely inaccurate!

But you can get an accurate Snapshot CMA by email or make an appointment for a full CMA from a licensed and trained agent!

An accurate CMA requires several hours of work, not just a few clicks on a computer screen. This form will get you in contact with Real Estate Ron of Tomlinson North Idaho - Sotheby's International Realty. A competent competitive market analysis can assist you when selling your home. When you sit down with this agent you will be able to see other similar properties that sold within the 'time to market' period, properties that expired without selling and currently active properties. Real Estate Ron will be able to provide you with a listing price recommendation based upon your specific time to market needs.

Complete the form or call 1.208.666.6264 today! Please leave a descriptive message as the voicemail system will page

Real Estate Ron!

***Working with Buyers all over North Idaho***

5 Acre Buildable Lots from the $50's!

Power and Phone nearby!

State Land backs many parcels!

Learn more!