Unless you’re buying and selling real estate every few months, how to know you’re getting a good price may be something you worry about. It’s a big transaction, after all, and you don’t want to pay more than you should or leave money on the table by accepting too little.
Whether buying or selling, there are three basic things to consider when evaluating if your price is a good one: comparable data, appraisal report, and professional opinion.
Let’s look at each of these …
Data on Comparable Sales and/or Listings (A.K.A. “Comps”)
How does your price compare to the price on similar properties? You’ll want to compare apples to apples here, not apples to bananas or strawberries. So the properties in your analysis should be similar in size, condition, age, neighborhood, and amenities.
Look at the sales price of comparable homes that have sold recently as well as the listing price of those still on the market — both new listings and those that have been on the market for a while without being sold.
Perhaps the price on those unsold properties wasn’t competitive enough. Maybe there’s underlying issues with the properties. Either way, you can learn from these unsuccessful listings and take them into account when evaluating your price on a property.
Real estate appraisers are trained to evaluate how much a property is worth based on a number of factors, including those comps we just talked about. While generally paid by the buyer, the appraiser is an unbiased third party. They are not on the buyer’s or the seller’s side.
Usually, the mortgage lender is the one who requires an official appraisal. The appraisal is part of the closing process and ensures that the sales price is a reasonable one based on the property and market conditions. It can help set your mind at ease, too, in knowing you’re getting a good price.
Appraisers are required to be licensed, and you can verify the status of your appraiser’s license with the Department of Consumer Affairs Bureau of Real Estate Appraisers.
Real Estate Agent Professional Opinion
While you may not be buying and selling real estate every few months, your real estate agent should be … or at least they should be helping clients do so.
A good real estate agent who knows the local area and real estate market will have a professional opinion you can trust. They will be able to advise you on how to know if you’re getting a good price.
At Foxen Realty, we know the Fresno area and the real estate market in this area. We’re here to help you get a good price, whether you’re buying or selling.
Contact us to learn more about how we can help, or simply call 559-490-0207 to get started today.