When you decide to sell your home here in Los Angeles real estate, your real estate agent will prepare a market analysis and give you his or her best opinion on the price that a buyer will pay.
Once you’ve found that buyer, if a mortgage loan is involved in the purchase, a fee appraiser will give an opinion. This opinion is the one that the bank will respect when determining the actual value of your house.
Neither your agent nor the appraiser pulls a number out of the air. So what information DO they use in determining value?
They use the prices that buyers have recently paid for houses that are closely matched to yours in size, age, condition, quality, amenities, and location.
Since few homes are exactly alike, they make adjustments to match the other houses as closely as possible to yours. For instance, they may add or subtract based on the number of bedrooms, the square footage, the lot size, the condition, the view, etc.
What Is Your Los Angeles real estate Worth In Today’s Market?
They do not consider:
· What you paid for your Los Angeles real estate.
· How much you still owe
· What the tax assessor says the house is worth
· What Zillow thinks the house is worth
· How much you need to pay your bills or buy a new home
· How much you love the home or the good memories associated with it
· How much your neighbor sold for if it was more than 6 months ago
· How much a friend got for a house in a different neighborhood or city
Because trends and competition are important, both the agent and the appraiser will also make comparisons and consider Los Angeles real estate that are currently for sale.
Studies show that correctly priced homes sell faster and for more money than do over priced homes. So be wise – price correctly based on the best information you can get: Your Los Angeles real estate agent’s comprehensive market analysis.