All About Newport Beach

How to Determine the Value of Your Newport Beach, CA Home

Are you considering selling your Newport Beach home? If you are, it is important to establish the value of your Newport Beach property. There are several ways to determine value of your property.

Comparative Market Analysis

One of the most important starting points is to consult with a professional Realtor. A Realtor will look at recent sales in the area with homes that are comparable to your home.  A Realtor will consider size of home, condition, location, and other contributing factors and will prepare a comparative market analysis. A comparative market analysis may include similar properties that are actives, pending/back up properties, and recent closed or sold properties. It is the sold propertie The Realtor may go back four to six months on recent solds on recent sold properties that establish the real value. Sometimes, it is necessary to go back further if there have not been any recent sales.

An important consideration  with sold properties is how recently they sold. Per the Residential Purchase Agreement, the property has to appraise for the sales price. If it is a cash deal, and the appraisal may be a negotiated item, and may not be a factor in the purchase. The appraisal contingency may be negotiated at the time an offer has been presented. This is an item to discuss with your Realtor whether you are a buyer, or a seller.

A Realtor  prepares a CMA for a seller, will go back 4-6 months when reviewing sales. If you are interested in having a complimentary Comparative Market Analysis, please contact me.

Appraisals

Another manner in which to determine the value of your Newport Beach home for sale is to have the property appraised by a professional independent appraiser. Appraisers will charge a fee for an appraisal, and this may be a  consideration if the Seller wants additional validation of the value of the home. An appraisal will cost the seller approximately $350.00 (however it varies).

As I stated earlier, the property must appraise for the sales price on the Residential Purchase Agreement. However, the appraisal contingency is a negotiated item at the time an offer is being negotiated.

Internet Estimates

There are many internet sites that a consumer may utilize to establish value of their home. The internet estimates may or may not be accurate, and take into consideration any conditions that may affect overall value of the home.

I recommend consulting a professional Realtor to prepare a Comparative Market Analysis for your property. This is a service that I offer at no charge to my clients. Please contact me if you are considering the value of your home.

Market Value

The value of your property is worth exactly what someone is willing to pay for it, and what you as a seller are willing to accept for it at a particular time. The market is the market. If a home is over priced it will sit on the market. If a property has been under priced, then you are risking not realizing the actual dollar amount the property is worth. Pricing a home to sell should be based upon the actual comparable sold properties. If it is priced at market value, then it is possible to have a multiple offer situation, and selling in a timely manner.

If a property has been overpriced, and it sits on the market, you may consider a price adjustment to reflect the current value of the home.

Chasing the market down is an extremely important consideration. Pricing your home high or to “test” the market to see if you get that amount is not a good idea. When a home is over priced, it will sit on the market accumulating days on market. And if there is a price reduction, however still slightly above the market, you can end up chasing the market down.

When a property sits on the market because it has been overpriced, the buyer’s assumption is – what is wrong with it, and is there a reason why hasn’t it sold? Pricing a house too high may handicap it right from the beginning.

If I can answer any questions about determining the value of your Newport Beach home, please contact me.