What is the Value of My House Today?

This is the million-dollar question for homeowners who are planning to sell. What is the value of my house in the current economy? How do I determine my home value before selling? In this article, I'll give you some tips for answering this all-important question.

First of all, you need to realize that house values are not an exact science. If you asked ten different appraisers to evaluate your property, you'd probably end up with ten different numbers. And there might be $20,000 difference between the highest and lowest numbers. Why is this true? Because the exact value of a house is hard to pin down. In fact, there really is no such thing as an "exact value." A home is worth what people are willing to pay for it. Period.

The best you can do is review the prices of recently sold homes in your area, and compare them to your own home. Focus on the actual selling price, as opposed to the asking price. You want to know what similar homes are selling for in your neighborhood. The more similar the property is to yours, and the more recent the data, the better. You can also get house value estimates online, to round out your research.

So what is the value of my house in the current market? It's worth what people are willing to pay for it. And you can find out what people are paying by looking at recent sales data. This is what professional home appraisers do. They use market data to establish a base price, and then they tour your property to see how your home stacks up. If you have certain features that the other comps don't have (like a spacious corner lot or an upgraded kitchen), you'll end up with more value in your house. Just keep in mind that appraisers consider upgrades in different ways. They all have their own preferred "formula" for appraising homes.

Real estate agents also have their own way of measuring market value. If you asked five different agents "What is the value of my house today?" you would once more end up with five different numbers. They would use their own background, experience and perceptions to answer the questions. So they would come up with different figures. Keep this in mind if you choose to work through a listing agent. My advice is to get a professional home appraisal, even if you're going to work with a Realtor.

Related articles:
How much is my home worth today?
How to prepare for an appraisal

This article answers the question: What is the value of my house in the current market? If you want to learn more about this topic, you might want to visit the pricing page of our website. Good luck with your selling process.

How Do I Rent My Home Fast in This Economy?

Question: "I need to turn my current house into a rental property. How do I rent my home fast in a slow economy like this?"

It's a common scenario for homeowners. They have to move out of their home for some reason, like a job transfer. But they cannot sell their house due to the slow market / economy. Many people in this situation are choosing to rent out their homes, to turn them into income properties. But it's not easy to go from homeowner to landlord overnight. It takes research and planning.

Rent it Fast, Using the Vacation Strategy

Now for the good news. If your house is located near some kind of attraction -- a beach, a national park, a popular city -- you could market it as a vacation rental property. There are certain tools available to help you rent your home fast, by putting it in front of thousands of travelers and vacationers.

Of course, this strategy doesn't work for every homeowner. I live in Round Rock, Texas, which isn't really considered a vacation destination. So the vacation rental strategy wouldn't work well for me. So with this article, I'm talking to the people who live in or near a popular travel destination. If this describes you, and you want to rent your home fast, then you should definitely check out the links below.

HomeAway is the vacation rental network with over 115,000 listings

They key to renting a home fast is to put it in front of the right audience. By using one of the popular vacation rental websites, you can tap into an active marketplace that already exists. This is certainly a lot smarter (and easier) than trying to recreate the wheel. If you live in a city that's popular among travelers, and you price the rental realistically, you could rent your house fast no matter what they economy is doing. The home buying market might have slowed down, but plenty of people are still vacationing.

This article answers the question: How do I rent my home fast in a slow market? We are currently developing a lot of new content for homeowners who want to get into the rental market. So be sure to check back often. New articles are posted almost daily.

Related article:
Marketing a Vacation Rental

How Much is My House Worth Today, in the Current Market?

Question: "I am selling my home later this year. I know that a lot has changed in the economy over the last few years. So how do I figure out how much my house is worth today, in the current market?"

This is the most important question a homeowner can ask before trying to sell a home. It's a critical stage in the planning process, but many sellers skip this step entirely. So just by asking this question, you're getting off on the right foot.

How to Determine What It's Worth

So let's address this all-important question: How much is my house worth in the current market? First, you should note the word "current" in that last sentence. This is the key to everything. The amount you paid for your house several years ago, or even last year, is totally irrelevant. Why? Because when home buyers and their real estate agents evaluate your asking price, they'll be using sales data from the last 30 - 90 days. They want to know what the property is worth today, not in the past.

Here's the bottom line: If you're trying to get the price you paid at the top of the market, but prices have dropped since then, you're headed for disappointment.

So that's the first thing you need to focus on -- recent sales data. This is the starting point for all of your pricing research. You need to start keeping track of sale prices in the area. Not the listing price, mind you, but the amount the homes are actually selling for in your neighborhood. You should pay particular attention to those properties that are similar to yours (same size, number or rooms, etc.). These are referred to as comparable sales, or comps. This is what real estate agents will use when trying to validate your asking price, on behalf of their clients.

Related article: How do I find real estate comps for my area?

How much is my house worth today? We are getting closer to answering this question, but we're not quite there yet. Once you've gathered some recent sales data, you need to factor in whatever upgrades you've made to your home. This is where things get tricky.

If you haven't done much to the home, and you have several comps from very similar houses, then it's a pretty straightforward pricing situation. But if you've made big upgrades, such as a kitchen renovation or swimming pool, then it gets more complicated. If you fall into the second category (major upgrades), it would be a good idea to have a professional home appraiser evaluate your home. The price properties for a living, so they can help you determine how much the house is worth ... upgrades and all.

How Much to Ask for the House

Based on all of this homework, you should be able to set a realistic asking price for the home. I can't stress enough how important this is. If you get this part of the process wrong, and end up overpricing the house, it will probably stay on the market for a long time. That's no way to sell a home. So you need to set the right price from day one.

This article answers the question: How much is my house worth today, in the current economy? If you have other questions about this subject, be sure to use the search box at the top of this website. There's a lot of helpful information on this website, and that's the easiest way to find it. Good luck with your selling process.

My House Won't Sell - Why Can't I Sell This Place?

My house won't sell in this market. I can't sell my home for some reason. Why isn't it selling? What am I doing wrong?

These are the most common complaints from home sellers, in any kind of real estate market. The fact that we have a nationwide buyer's market right now makes these questions all the more common. It also makes sellers more frustrated. So in this article, we will talk about some of the most common reasons why a house doesn't sell.

Why Can't I Sell My House?

If you're having trouble selling your home, you should consider each of the potential causes listed below. You may be experienced just one of these issues, or you could have several of them. You'll have to ask yourself some hard questions to uncover the problem.

Reason #1 - The Home is Overpriced

If your house won't sell, and it has been on the market for many months, then it's probably overpriced. Many homeowners price their homes too high because they need a certain amount to pay off their mortgages, or because they purchased the home in a stronger market. So let me say it bluntly. The amount you need to pay off your loan has nothing to do with the current market value of your home. Recent sale prices determine market value.

So you need to start there when pricing your home. I recommend having a professional appraiser come out for a visit. He will compare your home against recent sales in the area, and give you his professional opinion about the value. This is what they do for a living. If your house won't sell, this should be the first step in your troubleshooting process. Proper pricing is critical. If you get it right, the home will sell quickly. If you get it wrong, you're in for a long and frustrating process.

Reason #2 - The House is Not Prepped for the Market

There's a house for sale up the street from where I live. It has been on the market for at least six months. Every day, I drive by it and shake my head. "That place will never sell," I say to myself, "because nobody will ever go inside." The yard sign claims that it's priced to sell, but there are piled of weeds crawling up the base of the sign. The yard and front of the house look terrible -- just a real eyesore. It's probably a bank-owned foreclosure, but that's beside the point. The point is that this won't sell, because it has not been prepared for the market.

The outside is only half of the preparation stage. You also need to work on the inside of the house. Repair anything that's broken. Tidy up your landscaping. Update any outdated light fixtures, knobs and faucets. Add some fresh paint. There's nothing worse than walking into a dingy house. It's a surefire way to drive buyers away from the house. If you feel that your home is priced realistically, but you still can't sell the house, then you should take a good look at the condition it's in. Here are some staging tips to help you.

Reason #3 - Weak Marketing Strategy

Putting a sign in your yard and waiting for people to visit is not enough. It's a step worth taking, sure, but it's only the first step in the marketing process. If you want to sell the home as quickly as possible, you need to get it onto the MLS database. This is the fastest way to reach the largest audience of home buyers (and their real estate agents).

If you're working with an agent, your house is probably on the MLS already. If you're taking the FSBO route, you'll need to create a listing on your own. Here's an article that explains how to get it listed.

Reason #4 - It's a Slow Market

This is what we are seeing in many cities across America right now. It's harder for home buyers to get mortgage loans these days. Lenders have returned to the sensible (i.e. strict) lending practices of years past. The days of easy credit are gone. On top of that, the unemployment rate is still soaring in this country. When you add these things up, you have a smaller pool of qualified home buyers. So it's possible that a house won't sell, even when the seller does everything right.

Reason #5 - The Perfect Storm

Any of the reasons listed above could prevent a house from selling. It's also possible for them to overlap. Remember the house I mentioned that's for sale up the street from me? I believe they are experiencing a "perfect storm" of selling problems. It's obviously not prepared for the market -- I can see that from the street. It's also priced too high, for what the property offers (or doesn't offer). And like many cities, we are experiencing a slow market right now. I don't how they're marketing the property, but I've seen very little activity. So they could be having all of the problems listed above. That's a bad spot to be in, if you're the homeowner.

If you're house won't sell, you need to give some serious thought to each of the items on this list. Start with your asking price. Many homeowners can't sell their homes for this reason alone. They've overpriced their homes, plain and simple.

Next, take a look at your home's condition, both inside and out. When you stand on the curb and look at the house, what word comes to mind? Fresh? Appealing? Dingy? Tired? Neglected?

Last, you should evaluate your marketing strategy. If you don't have your property listed on the MLS, put it on there immediately. You can do this with or without the help of a real estate agent, and this article explains how.

I hope this article helps you out. Good luck.

I'm Selling My House on My Own - Any Advice?

Question: "I'll be selling my house on my own this summer. I have sold a home before, but I used an agent. This is my first attempt at the FSBO process. Do you have any advice?"

This blog is full of advice for people selling their own homes. So my first tip is to spend some time reading through the articles on this blog. You should also refer to the Sell Your Own Home tutorial we have on our main website. It gives you a good overview of the steps involved.

When selling your house on your own, the two most important factors are pricing and preparation. You must price the home realistically, based on current market conditions. And then you must prepare it for buyers. If you do these two things properly, you'll eventually sell the house -- regardless of how slow the market might be.

Let's talk about pricing first. The first thing you need to do is forget about the price you paid for the house, especially if you bought it more than a year ago. The value of your home is determined by current market conditions, not the conditions from when you bought it. This is something a lot of sellers just can't accept. But if you want to succeed in selling your house on your own, you need to start with a realistic price.

I recommend having a home appraiser come out to appraise the property. You can also use websites like Trulia and Zillow to see what houses are selling for in your area. This will help you set your own price.

Preparation is the second-most important factor to consider. Up the street from where I live, there's a home for sale. The front yard is atrocious, with waist-high weeds growing everywhere. We have complained about it more than once. The house has been on the market for more than six months now, and I've never seen anyone go inside. These people have clearly underestimated the importance of preparation. To avoid this kind of mistake, you should follow the advice in our staging guide.

Once you have the home priced properly, and you've prepared it for the market, you're ready to bring in the buyers. The easiest way to do this is by listing your house on the Multiple Listing Service. You can do this for a relatively small fee, even when selling your own home. Here's an article that explains how to get on the MLS.

This article pertains to the topic: I'm selling my house on my own, and I need some tips. If you need more advice on this subject, you can use the search tool at the top of this page. We add new tips to the website each week. I hope this response has helped you out, and I wish you well in your selling process.

How do I sell my home quick in a slow market?

Question: "Homes are selling pretty slowly in our area, but I know a couple that have sold quick. What could account for the difference? How can I sell my my home quick in a slow market?"

The two most important things are to price the home properly and prepare it for the market. If you read some of the other articles on this blog, you'll see me giving that same advice repeatedly. I don't mean to sound like a broken record or anything. Those are just the two most important factors, if you want to sell a home quick in a slow market.

This is also where a lot of sellers make big mistakes that end up delaying the sale -- either by overpricing the home, failing to prepare it properly, or a combination of the two. So, the keys to a quick sale are (A) realistic pricing, and (B) proper preparation and staging. Is there more to the process than this? Sure there is. But if you get these two things wrong, you're in for a long process.

You should start with the preparations (painting, landscaping, de-cluttering, etc.). These things take the longest. You can find plenty of tips in our home staging guide, located here. Start these preparations early.

In order to sell a home quick, you also need to know what's happening in your local real estate market. Which way are home prices moving in your neighborhood, up or down? How long are homes staying on the market? Are there are lot of foreclosure properties on the market, driving home prices down? You need to know these things. Even if you're working with a real estate agent, you need to know what's going on in the area.

It's not really that difficult to sell a home quick, even in a slow market. Many sellers make mistakes during the pricing and preparation stage, and then they complain about how slow the market is. The truth is this. A house that's overpriced and under-prepared will stay on the market for a longer time, regardless of whether you're in a buyer's or seller's market. And the reverse is also true. A property that is priced well and staged effectively will generally sell quick, in any kind of market.

Related article:
How do I sell my house fast in 2010?

I hope this article has given you some things to consider. If you take this advice to heart (and act on it), you should be able to sell your home quick and for the best price possible. Good luck with it. If you have other questions about this topic, be sure to do a search at the top of this page. That's the easiest way to find the information you need.

How to Sell a House Without an Agent

Question: "We have been planning to do an FSBO sale for a couple years now. But the current economy has us second-guessing ourselves. Is it still possible to sell a house without an agent in 2010, and if so how? What should we be doing to sell the home quickly without using a real estate professional?"

Good question. Let me start with the short answer. Yes, it's still possible to sell your home without using an agent, even with the current state of the economy. Sure, some markets are slower than others right now, and there's a big inventory of houses to compete with. But it can still be done. You just have to know what you're doing. And this is where most FSBO sellers go wrong -- they don't take the steps needed to sell without an agent in a slow market.

Selling Your Home Without an Agent

So let's talk about the things you can do to avoid the dismal fate I mentioned above. Let's talk about the steps need to sell a house quickly without using a real estate professional. Here are some of the most important things you need to do, starting today.

• Understand the market. You need to start tracking real estate sales in your area, in order to know which way the market is going. You should also read some recent news articles to that effect. If you want to sell your house without an agent, you need to step up and fill the research gap. So learn everything you can about what's happening in your area.
  
• Loosen your emotional connection to the home. When you list a property for sale, you have to start thinking about it like a product, and less like your home. I know it's hard to do, but you have to gradually separate yourself from the house. Otherwise, you'll be more inclined to overprice the property and under-prepare for the market.
  
• Get a home appraisal. A professional appraiser can tell you how much your house is worth, based on recent sales in the area. This is a good starting point for your pricing strategy.
  
• Set a realistic asking price. This is where many sellers make mistakes, especially when they sell their homes without having an agent to help them. This is where the previous steps come into play. If you overprice your home, it's going to sit on the market for a long time. That's the last thing you want.
  
• Start preparing your house for buyers. Fix anything that needs repair. Paint rooms to brighten them up. Update fixtures to modernize the house. Follow the room-by-room staging tips in this article.
  
• Get it listed on the MLS to reach the widest audience. You can do this without an agent by using the link provided at the top of this page (ForSaleByOwner.com). They can also feature your home on Realtor.com, which is a great way to reach buyers.
  
• Be flexible in your negotiations. In a seller's market, you can play hardball with buyers. But most cities across the U.S. are experiencing buyer's markets right now. So you need to keep this in mind when negotiating. If you quibble over nickels and dimes, you could lose the buyers. And with the state of the economy, you never know when another qualified buyer is going to come along.

If you want to sell a house without an agent (and as quickly as possible), you need to follow the advice provided above. These are not optional steps. These are things you must do, if you want to get it right and sell your home fast. Good luck!