While there may be instances when a homeowner must sell a property and move regardless of market conditions, there are other times when the value of the property will be a deciding factor in whether a homeowner moves or remains in the home for a longer period of time.
Some homeowners will attempt to determine the current value of their home on their own or trust the government assessment, but these values are not always an accurate representation of a realistic list price.
There are a few good reasons why it is best to request valuation services from a real estate agent rather than to refer to your government assessment or estimate value through personal market research.
Gov. Assessors Use Older Comparable Data
Some homeowners will contact their government assessment office for a valuation, but these valuations are not always accurate or reflect a listing price that a real estate agent would recommend. One of the reasons for this is due to the fact that appraisals typically use older comparable data, often times comparable properties are over a year old. In many areas, market conditions can change dramatically within a few months, so older comparable data will not provide a reasonable listing price.
Consumer Preference Is Important In Valuation
Gov. assessors are generally objective, and they take into account property age, size, room layout and other physical factors. Where a REALTOR® may be more specific, assessors often look at overall square footage rather than style of home. Consumers who are in the market to purchase a new home also take into account other factors like how desirable the location is, the style of the home and smaller designer touches that the appraiser will not take into account. This can affect the actual list price, and these are all factors that a real estate agent will take into account.
Properties May Have Special Features That Affect Valuation
Gov. assessors only have access to specific information when reviewing comps, and they therefore cannot take into account special features that a property has that may affect value. For example, upgraded appliances, a security system, a new HVAC system and other features may increase value, but the appraiser may not take these into consideration. A real estate agent will review all aspects of the home to determine a fair and reasonable asking price.
Valuation is an important factor in many homeowners’ decisions about whether to sell now or sell later. Those who are interested in learning about the value of their property can reach out to their trusted local real estate agent for assistance.