Avon Indiana real estate, Market Value versus value... (edit/delete)
Market value vs. value...
Avon, Indiana - Realtor Chris Castetter can help you best determine the market value for your property. Often times we do not stop to realize that there is a difference in market value versus value. When selling your home is the main goal, market value will be key.
market value n. The amount that a seller may expect to obtain for merchandise, services or securities in the open market. (The question to consider is this: "In today's real estate market, what will an educated, objective buyer pay for my property?" Remember, buyers shop by comparison and know the market sometimes better than a seller.)
Often times I am presented with an appraisal from a potential home seller, which usually tells me that the homeowner believes that this "appraised value" is what his or her home will sell for in today's real estate market. This is not the case usually...
An appraisal for an existing property is most often performed for the sake of refinancing a home to gain a second mortgage or line of credit (which I do not recommend.) also referred to as a HELOC. This
The lender will need to show a certain percentage spread to be able to make the loan and complete the refinance. Generally the appraisal is inflated to reflect a high enough value to cover the percentage spread needed. This does not reflect "market value". It reflects the value that the lender needs to see in order to loan you money. This is the case in Indianapolis or anywhere in the U.S.
appraised value v. to estimate the quality, amount, size and other features of;
value n. Worth in usefulness or importance to the possessor; utility or merit.
HENDRICKS COUNTY INDIANA - While overall home sales remain lower on a month-to-month and year-to-date basis in Central Indiana, three Indianapolis-area counties reported higher sales in December 2008 than the same time in 2007, according to finalized pended sales statistics compiled by F.C. Tucker Company. Hancock, Johnson and Marion counties showed improvement over other counties in the nine-county region.
Available homes for sale dropped 14.3 percent in December 2008 with 2,605 fewer homes on the market than in December 2007. Total homes available for sale at year-end were 15,600. Marion County and Hendricks County experienced the greatest decrease in inventory at 19.2 percent each.
Current interest rates are hovering around 5 percent for a 30-year, fixed-rate loan, and with the Federal Reserves MBS (mortgage-backed securities) buying program in full swing, many experts believe that mortgage rates will stay down for the foreseeable future.
"We continue to be encouraged by the decline in inventory in Central Indiana, as available inventory declines, we hope to see pricing firm up. Also, as interest rates remain historically low, consumer confidence will continue to grow."
Homes remained on the market an average of 92 days in December, only a 2.2 percent increase comparing year-to-date figures from 2007 and 2008. Four counties - Hancock, Hendricks, Johnson and Madison - showed a decrease in days on the market, compared to December 2007.
Madison County also showed a 7.4 percent increase in average home sales price in December 2008, compared to December 2007. Home inventory in the county decreased 7.9 percent over the same time frame.
I continue to stay optimistic about the real estate market, depsite the sometimes meida gloom and doom. Please contact www.chriscastetter.comfor your real estate needs in Hendricks and west Marion Counties. Proudly serving Avon, Plainfield, Danville and Brownsburg. indymarketleader@gmail.com
So now the information is in hand. You have been given a CMA, which gives you an opinion of the fair market value of your property. Many homeowners like to have two or three opinions, thus interviewing more than one agent. However, be cautious for the one(s) who tells you want you want to hear. It is not fair to anyone involved to tell you that your home is worth more than it really is just so that Realtor can get your business. This will turn out to be a lose, lose situation for you. Instead, be objective and honest with yourself through this process.
By now, you will be able to determine if now is the right time for you to make a move or not. If it is the right time, then here are some questions that every homeowner should ask their potential real estate agent prior to listing.
For more information regarding pricing, conditions, and home staging, please feel free to contact me for all of your Home Selling Matters. at 317-414-1117 or visit www.chriscastetter.com. I want the opportunity to earn your business and appreciate your referrals.
So where should a home seller begin? Finding an experienced, honest & LOCAL real estate consultant should be researched thoroughly. The majority of my own real estate business is business from past clients and personal referrals, which is a great way to find a great agent. Ask your neighbors and co-workers who they would recommend to sell your property? If someone has had a great experience with a Realtor, they are sure to refer that persons name along to you.
However, the search does not stop at just the referral. You need to then research this person or persons online, review their web site, their statistics, their history of success in the business and so on. If the information is not posted, call and interview that agent and ask to see their testimonials from satisfied past clients and ask other questions.
You then need to ask this expert in the industry to prepare for you a CMA (comparative market analysis) based on recent home sales in your area. At this point, you will need to schedule an appointment to show the real estate agent your property and allow him or her to do their homework. "Do not give your opinion of what you believe the home is worth." You simply want an "objective" opinion about the fair market value of the property.
Once this is complete and perhaps you have two or three opinions, you are ready to determine what your next move should be in the best interest of your goals. Make certain that you get in writing a net proceeds sheet, which will outline your costs of selling.
For more information regarding pricing, conditions, and home staging, please feel free to contact me for all of your Home Selling Matters. Also stay tuned for part III of "To Sell or Not to Sell", that is everyones question.
If you are thinking about selling your real estate, please call me at (317) 414-1117 or visit www.chriscastetter.com. I want the opportunity to earn your business and appreciate your referrals.
TO SELL OR NOT TO SELL? PART 1.
January 14, 2009: In today's real estate climate in central Indiana, is it worth trying to sell your home now or wait a year or two? Five different real estate professionals would likely give you five different opinions on this topic. This is not a "one size fits all" question. It is specific to your goals, your finances, your specific location, reasons for selling and more.
We are faced with a market condition where "price is king." If you, as a home seller are NOT in a position to be very, very aggressive with your advertised list price, then maybe you should sit tight and see how the local economy plays out.
Today's sellers have to be able to compete with declining home values and continued foreclosures, which bring our values down even more. This depends greatly on what "true equity" you have in your property and/ or the amount of liquid assets you have available to cover a potential loss with the sale of your real estate.
Additionally, the condition factor of your "product for sale" MUST be a perfect ten! This is where many realtors and home sellers fall short and are not honest with themselves. It is crucial in today's market to consult with a credible home staging consultant to maximize your space and appeal.
For more information regarding pricing, conditions, and home staging, please feel free to contact me for all of your Home Selling Matters. Also stay tuned for part II of "To Sell or Not to Sell", that is everyone's question.
If you are thinking about selling your home, please call me (317) 414-1117 or visit www.chriscastetter.com. I want the opportunity to earn your business and appreciate your referrals.
 |
|
|
chriscastetter.com is a native of Hendricks County Indiana & is The Local Real Estate Expert in the area. Selling Avon, Plainfield, Brownsburg and all of Hendricks & West Marion CountY
ActiveRain Corp. is not responsible for the accuracy of the site's content (which is written by members of the ActiveRain Real Estate Network) and does not endorse the views of the real estate agents, mortgage brokers, and others listed here.
Powered by the ActiveRain Real Estate Network
© 2009 ActiveRain Corp. All Rights Reserved
