How To Calculate A Fair Offer For Your House

Do you plan on relocating soon? You might have found work in another location, or you’re finally moving into your dream house. Such life changes often require you to sell your current home. When doing this, you want to get the best deal from the sale. The money you’ll get will come in handy as you move into your newfound space. 

One way of ensuring you get the best deal is by finding a fair offer for your home. A fair offer refers to the price buyers are willing to pay for your home. There are many ways to calculate a fair offer for your home. These are: 

Use The Comparative Market Analysis (CMA) Report 

Real estate professionals like realtors do the CMA report for their clients, the sellers.  

Realtors from realty companies like Chatburn and alike will analyze the selling prices of similar properties to yours in the recent past. The similarity between the properties lies in the location, amenities, age, square footage, and the number of rooms, among others. With these figures, you can find a reasonable offer. It should be within the range of the figures, not too high or too low. 

Use Online Home Value Calculators 

With the rising need for home sellers to determine the value of their homes, businesses have found ways to help the public get this value. They offer home value calculation tools online. 

As a home seller, search websites and platforms that offer these services. With the identification, fill in the data they require from you. This data surrounds your home’s features, like its size and square footage.  

An online home value calculator system will then use the details you give to find properties of similar characteristics from previous sales. It’ll use this data to calculate your home’s value. With this system, you don’t need to work with a real estate agent. You can get the figures independently.  

However, as you rely on these online calculation systems, it’s important to note that the valuation you get can be incorrect. It’s said that this system can sometimes rely on the sales of properties sold a long time ago, which shouldn’t be the case. You want to look at the most recent sales, preferably in the last three months to land on a fair property price offer

Get A Broker Price Opinion (BPO) 

As the name suggests, a BPO is an opinion of your home’s fair offer by a licensed professional realtor. In most cases, you’ll have to pay for these services. 

The agent will assess your home’s condition and identify its features to arrive at this opinion. These features are the number of bathrooms and bedrooms, total square footage, energy efficiency, and other amenities like a swimming pool, gym, or sauna. They’ll then calculate your home’s value based on the previously mentioned aspects.   

This value is the worth of your home as is, and from this, you should gauge your fair offer. As you do this, applying the 70-30% rule is important if you’re selling your house as is, without any renovations.   

This rule states that the buyer won’t buy a property whose offer price is more than 70% of the After Repair Value (ARV) minus the repair expenses. Your chosen agent should factor this in as they give you their opinion on the ideal price tag of your house.  

Use The Market Value And Property Tax Bill 

The discussion above has already detailed how to calculate the market value of your house. This figure is based on your property’s features.  

You’re likely to get a more accurate approximation should you get the sale price of similar houses in the recent past. Consider checking the prices of four or five houses and getting the average. This average is the figure to consider as your home’s market value. 

Next, check your most recent property tax bill. Find the appraised value of your house; it’s likely indicated at the bottom of the bill.  

With the three figures, the actual market value, the comparison value, and the appraised value find a suitable price that falls within the range of the figures. It should be an amount you’ll be comfortable selling your house for without feeling you’ve under or overvalued your house.   

Conclusion 

The process of selling your house can prove to be hectic. There are often a lot of processes or aspects involved which can make the journey frustrating. This post has established that one of the stresses surrounds finding a fair offer for your house. And the stress is more or less gone, thanks to this read. It has given different ways you can calculate this offer.  

Each technique is valid, and you should choose your most preferred and convenient one. Consider adopting two or three techniques to find the ideal price prediction. Should it get confusing, it’s best to work with an expert. They’ll advise you better on the ideal fair price. 

Related Posts

Leave a Reply

Your email address will not be published. Required fields are marked *