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There is a 1bd house for sale for $ 35,000. My brother looked at the house on the outside and says it is not worth more than $ 20,000. How does one know how much a house is worth? Why would a seller sell the house for more than it is worth?

4 Thoughts on How does one come up with the price to sell their house?
  1. Reply
    dubstepponcho
    March 13, 2013 at 1:44 am

    they guess herp a derp

    The easiest way to determine your home’s value is to pay for an appraisal, and price your home close to the appraisal price. You can find Residential Fee Appraisers listed in the Yellow Pages under Appraisers. For about two to three hundred dollars, they will give you a by-unit (room to room, fixtures, amenities; and square footage) comparison appraisal to similar property in your area. The downside is it will cost you money, but the upside is that you have in writing a professional appraisal on your home which you can display to prospective buyers. This can be an added selling feature. But there are other methods you can use, which won’t cost you as much.

  2. Reply
    Appraiser guy
    March 13, 2013 at 2:41 am

    The only way to know the true value is to have it appraised or you can get guesses. Remember asking price has nothing to do with market value. Some seller have a RE agent come out and do a BPO, and the really bad RE agents, tell the seller what they want to hear, just to get the listing and that’s a guess and not an appraisal. Some sellers use county assessments and that has nothing to do with market value, and then there are some, who use zillow and that is about as accurate as a blind man in a shooting contest.

  3. Reply
    Use Your Noodle
    March 13, 2013 at 3:34 am

    And how did your brother come to the conclusion it was only worth 20k? Is he an appraiser? A real estate agent? Does he know what comparable properties have sold for? Probably not.

    It sounds to me as though your brother is talking out of his behind. He went by the house and by just *looking at the outside* it guessing it is worth less. He knows nothing. He hasn’t been inside, hasn’t seen what other comparable houses have sold for in the last 6 mos etc.

    Instead of listening to your brother who doesn’t seem to have a clue, you need to talk to an agent who can show you what it should go for.

  4. Reply
    Jeanbug
    March 13, 2013 at 3:44 am

    So your brother is an expert in determining the value of a home simply by looking at the outside? Impossible. He has no idea of what’s inside the house, and it’s those interior amenities that can boost up the value.

    Thing like a remodeled kitchen & bath, working fireplace, hardwood floors, new furnace & AC, new carpet, new wiring, finished basement or attic space, extra insulation, etc. all increase the value of a home. It’s those little extras that ultimately help determine the fair value of this home based on comparable properties elsewhere in the area.

    Prices are suggested by the Realtor who compare this house to similar homes with similar upgrades that have recently sold. Appraisers do the same thing, but using a more scientific approach with dollar values assigned for specific features. A spectacular view, mature landscaping, or some other intangible asset can also drive up a price.

    So presuming that your brother is right and this house is massively overpriced, here are several reasons why an owner would try to sell a house for more than it worth.

    1. The owner bought the house at the top of the market when values were higher and still owes $ 35,000 against it.
    2. He put $ 30,000 of repairs into the property and would like to get the money out of it.
    3. Hubby really doesn’t want to sell but promised the wife he’d try (but not try too hard).
    4. The land is where the real value is.

    I wouldn’t rely too much on what your brother says, but instead call the owner/listing agent and ask for a tour of the house. This way you can see for yourself what the inside of the property looks like, what improvements have been made, and if it’s worth pursuing at this price.

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