The term property value has different meanings. In this section, we will discuss property value as it relates to market value for a traditional real estate transaction for land and home valuation. Comparative Market Analysis Reports provided by real estate agents help to provide information about current market value. We invite you to contact us for a comparative market analysis report when you need to know your Howell County Missouri Property Value.
The property value in terms of market value is what a buyer is likely to pay and what a seller is likely to accept under normal conditions in the current market.
Lenders oftentimes will request appraisals to show the opinion of property value.
Appraisals help lenders to know that the value of the property is enough to cover the loan amount.
Appraisals are performed by licensed appraisers that are selected by the lenders, not the sellers.
Appraisers use many tools and strategies to estimate the opinion of the value of a property.
Comparative Market Analysis
Real Estate Agent Services oftentimes include providing sellers with a comparative market analysis for land and home valuation. A comparative market analysis is not an appraisal. It is an analysis report of recent real estate sales in the area of similar properties.
The CMA provides information relating to recently sold similar properties in the market area, current similar properties on the market, and recently expired properties that were on the market but were not sold.
A detailed CMA can include details such as the initial listing and the selling prices of properties as well as the time span the property was on the market.
Properties used comparables in the CMA can go back as far as six months. Depending on market stability the agent might choose comparables within the last three months. Some instances require longer intervals however, more recent comparables are most suitable.
Purpose of Comparative Market Analysis
The analysis of information in a CMA helps a seller to understand the current market for similar properties, therefore, helping the seller to understand the opinion of property value to decide upon the asking price that is most likely to sell in current market conditions. Recent land and home valuation services by licensed real estate agents, help sellers to have the most current information regarding the area real estate market.
Properties priced at market value are more likely to sell quickly, and furthermore at the market value price. Many lenders will only loan the amount of the appraised value to qualified buyers.
By overpricing properties, the seller risks creating situations in which buyers that are using financing, can have limitations in addition to the possibility of having more upfront costs in order to proceed with the purchase. Additionally, overpricing a property creates a situation in which the property remains listed on the market for a long duration. Properties listed on the market for a long period of time can create the risk of creating a stigma. Properties that are on the market for extending periods risk losing buyer interest. Potential buyers could make negative assumptions, moreover that the property has issues or is priced incorrectly.
Underpricing a property can produce a quicker sale but results in a sale at a lower price.
Determining the correct market value and pricing the property as such, creates more interest. As a result, this action can result in a quicker sale.
Contact us today for a CMA to get your Howell County Missouri Property Value in the current market.
Email Christy King at CKing@HowellCountyMissouriRealEstate.com