If you have been wondering what your South Lake Tahoe real estate is worth, talking with a Realtor in Lake Tahoe is the best way to get that number. Especially if you plan on listing your home in the near future. A lot of buyers and sellers turn to websites like Zillow to find out that magic number, but the reality is that a Realtor is the best person to provide that as websites don’t necessarily know all the features or upgrades the interior of your has. So how does a Realtor in Lake Tahoe determine a home’s value? Let’s look at the factors involved.
When a real estate pro determines market value for a property they do not look at the neighborhood’s active listings. What a seller lists at isn’t necessarily what a property is worth. In order to pick a fair number, a Realtor in Lake Tahoe will look at comparable sold properties nearby that have sold in the last 90 days. They use the amount of beds, baths and square footage as the details that determine whether a property is similar. Once the comps have been pulled, they average those numbers to come up with a good starting point for your own home value.
You now know what your South Lake Tahoe real estate value is to you as a seller, but what is it to a buyer? You need to consider how buyers search for properties online. If you have your home listed at $403,000 but a great potential buyer is looking with a max budget of $400,000, they will miss your home. Over $3,000. Most buyers are searching in $20,000-$25,000 increments. Depending on how you price, your target demographic could be missing your home in search results. Also refrain from “awkward” pricing. Odd dollar figures are confusing to buyers so instead of listing at $499,995, just list at $500,000.
Sellers sometimes get caught up on a certain number because they are trying to put a value on their personal attachment and their memories in that home. We get that in certain markets learning that a property is worth less than what you paid for, or what you thought, can be tough. Especially when you have put so much time and energy into upgrading and maintaining the home and all the good times that were had there. Seller’s need to remember to be objective. Renovations usually only yield about 65% ROI depending on the type of upgrade. A home is only worth what a buyer is willing to pay, so try to detach a little bit and understand that there are certain things you just can’t put a price on or that add to the value.
Knowing your homes worth is important because if you don’t price according to market value from the start, it can sit on the market too long causing prospective buyers to think there is something wrong. This can result in them just bypassing it completely and not touring it at all. Every home and every seller situation is different. Communicate clearly with your Lake Tahoe Realtor so that they can price according to market value, your timeline and your real estate goals. For more information on listing or buying real estate in Lake Tahoe, give me a call. I would be happy to help!