Is a Home Value Calculator Relevant in the Real Estate Industry?
Every homeowner who's looking to sell their home wants to receive a handsome amount of money. It is a simple calculation that everyone will find relevant. Before selling the house, you look for a new home where you want to move. Suppose the new house costs $35,000. When you sell your current house, you would most likely want the selling price to be at least $35,000, if not more, so that you don't need to invest anything from your pocket for your new home.
But what should be the average asking price for your house? You cannot randomly set an asking price just so you can meet the cost price of your new home. If you are not sure what price to ask, you can always use a home value calculator.
Using a home value calculator
Setting an asking price for your house is no guessing game. You need to know the average selling prices of properties in your neighborhood first. Otherwise, buyers may not respond to your quote. A home value calculator considers several factors and uses an algorithm to suggest the average selling price of your property. Here are some of the factors that the calculator considers.
1. What is the average price of properties in your neighborhood? Remember, the houses should have similar square footage as your home. This helps the calculator to compare the different selling prices of houses in your locality, add applicable taxes, and then come up with a tentative selling price for your home.
2. You need to answer a few questions about your house, such as the condition of its interior and exterior, if it has a garden or front yard, if there is a deck in the backyard, the total carpet area, and the number of rooms.
3. What is the average purchase price of the houses in your area?
The calculator also compares the general asking price of properties in your neighborhood. For example, if there are Lake County homes for sale, the calculator will compare the asking price of the sellers with the average selling price of similar properties in the same location. If your selling price is way above the average selling price, then you may need to reconsider your asking price.
Why is a home value calculator essential?
A home value calculator is an essential part of the real estate industry. Both the seller and the buyer can use this calculator to figure out the average asking price. A seller would want to sell the property at the maximum possible price, while the buyer would want to pay a price that suits his/her pocket. The calculator helps to know the figure that both parties can agree to meet on.
If you are the seller, the closer your asking price is to the home value calculator's figure, the more prospective buyers you can expect. This also increases the chances of selling your property quickly. The buyer, on the other hand, would use the calculator to see if your asking price is more than the average selling price of properties in your neighborhood. If it isn't, he/she may want to buy your house if the asking price is within his/her budget.