By: Amanda Ferrari, Bend Realtor
Have you spent some time on Zillow and wondered how accurate it is? Let me ask you this, has Zillow been over to your house and looked at it? Probably not. So what is your Bend home really worth?
Let's walk through some of the factors that need to be considered to find out what your Bend home value really looks is. This should help you accurately determine how much equity you have in your home and how much money will be going into your pocket when your house sells.
#1 Real Estate Websites
Real estate websites, such as Zillow and Realtor.com, are fun and can be a useful tool for looking at homes. However if you are considering selling your home, you will need more personalized information. Every property has unique characteristics that dramatically impact their value.
Real estate websites use a formula based on what the home sold for the last time it was purchased, and it knows information about homes in the surrounding area. It will use general information such as the square footage and the number of beds and baths. These websites tends to be more accurate in an area with similar homes. In areas where homes were built at different times and have variability in floorplans, sizes and upgrades, their estimate can be drastically off.
#2 Comparable Homes
A realtor can look at comparable homes to help determine the current market value of your home. But determining the list price of a home isn’t that black and white. A real live professional looking at your home can do so much more than that!
They can look at active, pending, and closed listings. Active listings are your competition. This does not mean that someone is willing to pay the price they are asking, but it let’s you know what you are up against when you put your home on the market.
One of the best pieces of data comes from homes Pending in your area. You will not know what a home sold for until it closes, but you can still get a pretty good indication of what somebody is willing to pay for it. If you see a home in your neighborhood went Pending in three days, you can safely assume that the offer was close to or even above asking price.
Real estate agents will also call other listing agents to gather details about Closed listings. If there is an outlier, maybe there was a structural problem and this resulted in a lower-priced sale. Or a home that sold significantly higher may have been completely renovated.
4. Finally, a real estate agent can see your home and get a feeling of your home. They will know if it is dated and has deferred maintenance, or if it has been loved and cared for. They will be in tune with the Bend real estate market and what features prospective buyers may be looking for.
#3 Listing Price is Critical
The number one reason homes don’t sell is because the asking price is too high. It is critical that you list your home at the right price on day 1. As a seller, you have the most leverage and best opportunity to get a great price the first week you list your home. Once your house is on the market for a long time, the buyer doesn’t have the incentive to give you a high price.
This property pricing pyramid demonstrates the balance in determining your property’s market value. As the home’s price goes up, fewer potential buyers will look at your property. When the asking price starts to go below the market value, the number of potential buyers increases.
When pricing your home you will also want to take into consideration how quickly you want to sell your home as well as your tolerance to having buyers come in and out of your home.
Hopefully, you now have some clarity on pricing your home so you can achieve your real estate goals! Please reach out if you or someone you know would like a free home estimate, I am happy to help!