As we’ve been operating buying houses in the local area and helping property owners to get out of their real estate investments, we’ve seen a tendency throughout the industry to just talk about the subjectivity of real estate value.
You might have heard something like this before – you hear somebody say that “a house is just worth what someone will pay for it.”
The reality is that that’s sort of a market-driven sentiment, and not one that reveals the whole picture in terms of real estate valuation.
What do we mean? Well, for an average buyer on the market who is competing with any other average buyer and looking at any range of properties, there is a lot of subjectivity in the real estate value of a single home or property.
But in cash-out homebuying, where someone wants to expedite a deal, the whole thing might work quite differently.
When we put together fair market prices for property, we’re looking at a number of concrete things to set a value that makes sense for the market and that’s fairly concrete.
The first criterion is location. Most people know that it’s important where a property is located, because of neighborhood market values and school districts and everything else. So we take that into account when putting together an analysis.
The second criterion is repairs – what’s needed in order to fix a property up to a safe and livable condition.
The third piece of our equation kind of goes along with that. Looking at the overall condition of the property, its accessories and its home systems, we can pinpoint a better fair market price.
How It Works
After the buyer and seller have agreed on a price, the rest of it is, in some ways, fairly simple. Yes, there is paperwork and yes, the seller has some costs, but the actual value of the real estate is hammered out and agreed upon. Then it actually doesn’t take long to go to settlement, and the seller can get cash out for the property and go about whatever else he or she wants to be doing.
It’s worth noting that this typically isn’t the way it works in the market. People who sell their property through an agent are taking the time and effort to advertise to the entire real estate market – and as any agent will tell you, that does take additional time and effort. There’s a different timeline and a different goal.
Talk to Azalea about your plan to sell a home.