How Do Agents Determine a Home Value?
Knowing the value of a property could be tricky in the rapidly-changing world of realty. Last month's home value could have a significant change in today's market. This makes it difficult for a seller or a buyer to determine how much they are willing to sell or buy a property. Now we wonder, how do agents determine a home value? Let us find out together.
Pricing a property as accurately as possible requires current data of closed transactions. Data obtained from the past 2 to 3 weeks can give quite an updated market value of a certain property. Data obtained from active or pending listings can provide a more accurate value as it is fairly recent.
An agent can be significantly helpful in assessing the value of a property. As we read on, we will know how agents use the correct data to determine the value of a house.
Pricing Methods Used by Buyers and Sellers
Agents, sellers, and buyers use different methods to determine a home value. Not all of them are accurate and reliable.
PFA - this stands for "pluck from the air". Surprisingly, numerous sellers or buyers have recourse to using it. They put a value on a property without any concrete or reliable basis. Home values are sometimes based on a slightly same property or on the value at which the property was first purchased.
- Consulting Zillow - Zillow can be really helpful with a lot of things concerning real estate but unfortunately, accurate property pricing might not be one of them. Zillow uses algorithms and data from past closed transactions to determine a value of a property listed in the market. While the curated data might be accurate during the time when it was taken, the chances are the value might have drastically changed in present market conditions.
Sellers and buyers should know that relying on this to know the value of a certain property might be concerning.
What Agents Must Do to Accurately Determine a Home Value
Agents have solid knowledge when it comes to reality. They are trained to know the value of different types of property in different locations. But sometimes, problems occur when it comes to determining a home value because of the ever-changing market of real estate. The property value last week might not be the same for the current week. Agents should find the right sets of data to determine the right home value.
Agents must go over the data of sold houses from the last two to three weeks. This might not be 100% accurate, but nonetheless, it will give you more updated data than the data obtained from the last 2 to 3 months.
Agents can base a home value on active or pending listings. This will give them the most up-to-date information that they need when it comes to knowing the value of a certain house. This is one of the most effective ways in determining the right home value.
Selling a property is now taking longer these days. The reasons are the increasing options for the sellers, higher interest rates, and confusion from both sellers and buyers. If agents are able to give the most concrete, accurate, and updated home value, selling will be done faster and easier.
We can all agree that real estate is one of the most fast-pacing industries. It is crucial for the sellers and buyers to have an agent that knows how to gather the market information from the right sets of data. This is a very effective way to buy or sell a home with its true and current market value.
Want to Know More About Selling or Buying a House? Let Us Help You!
We have a team of dedicated agents that would be happy to answer your inquiries. We are here to assist you with your real estate transactions. We can also provide you with in-depth real estate knowledge through our website and other social media platforms. All you have to do is reach us at (386) 871-7697 or visit our website ronsellsthebeach.com.