Market Value vs. Appraised Value

Real estate is truly a numbers game. From the price you list your home at, to the price you’re willing to pay for someone else’s home, to the assessed value of a property, there are a lot of different numbers floating around that need to be considered. But, before you can figure out how to properly leverage an offer, it’s important to understand the values you’re working with.

Most important to understand is the market value vs. the appraised value of homes for sale in Alpine, TX. These two numbers may be similar in nature, but what they represent has a profound effect on how you list a home or what kind of offer you decide to put in on one.

Market Value

Market value is what someone is theoretically willing to pay for a home. It’s usually a number that’s in flux and is greatly affected by market conditions and external factors, such as the price of comparable homes in the area.

Market value is important to understand because it helps homeowners and buyers alike come to a resolution. For example, if the market value of a home is around $300,000, it gives a seller a figure to list their home at, with the expectation that someone would see that value as reasonable. For buyers, it establishes a baseline for what they can expect to get for their money out of comparable homes and can drive bidding.

Appraised Value

Appraised value is what the bank is willing to pay for your home—more specifically, the amount of a mortgage loan they’ll cover. It’s the physical nature of the property in its entirety and the value is assessed in much the same way as market value in terms of looking at exterior variables like location and comparable homes.

Think about our $300,000 house. If that’s the appraised value, a buyer might not be as willing to bid up on it, knowing the bank might ask them for a larger down payment or reject their mortgage application if it exceeds that value. Likewise, a seller might use appraised value to set a more lucrative price point based on what they previously bought the home for years ago.

How One Affects the Other

Market and appraised values often clash. For example, if market value is higher than appraised value, it could mean homeowners have to pay more upfront for their prospective homes. Likewise, if appraised value is lower than market value, it can signal inflation in the market, which leaves sellers feeling great and buyers in a bubble. Both values are important individually and when juxtaposed.

At the end of the day, the price you set for your home for sale in Alpine, TX or the price you’re willing to pay need to both be reflective of market and appraised values. Finding a price point that plays nice with both of these values is the smartest way to facilitate a transaction that’s smooth and free of hassles and headaches for both buyer and seller.

Is It a Good Idea to List My House for Over the Fair Market Value?

Everyone wants to get the best price for their home when they put it up for sale on the market. With this mindset, it may seem like a smart idea to jack up the listing price well above fair market value. For example, if your home is valued at $250,000, you might be tempted to put it out there for $275,000 just to see if anyone will bite at that price.

Unfortunately, trying to bump a property for sale in Alpine, TX well over its fair market value almost always ends in failure, for a number of reasons. Let’s take a look at some of the reasons overpriced homes end up being a debacle and why straying too far above market value will end up costing you in the end.

Missing Your Audience

Just because you list your home at $275,000 doesn’t mean someone will pay that price. In fact, you might end up appealing to an audience that’s not quite interested in your home. Worse still, trying to push your home into a higher demographic can dramatically shift its perception. Instead of being a high-end home in a lower price range, you might end up coming off as a low-end home in a high price range. Perception is everything when it comes to attracting the right audience.

Starting a Bidding War

In most cases, a bidding war is great for homeowners—it means there are multiple sellers who are willing to pay a premium for your home! In the case of an overpriced home, however, the bidding war might be between you and a single prospective buyer. In this case, the buyer will likely have leverage. If they know a home is overpriced, they’ll undercut your asking price as much as they can and, if you do eventually come to an agreement, it’s likely going to be for less than market value.

Stepping the Price Lower

When homes are listed far above their market price, they can tend to be stagnant listings. People avoid them because they know they’re overpriced. So, in order to attract new viewings, many homeowners will start to step down the price incrementally, little by little. Over time, this gives the property a negative perception. People start asking “What’s wrong with it?” or “Why does the price keep falling?” It gives off the vibe that a house is defective or that the owner is having trouble selling it.

Creating False Hype

If a home is appraised at one value and listed well above that value, it can create hype. Buyers think there must be something truly amazing about it to warrant such a jump! When they check it out and find nothing overly exceptional, the hype is immediately derailed. This is one of the fastest ways to kill interest in your home.

The moral of the story is that while it might seem like a good idea to overprice your property for sale in Alpine, TX and see who bites, the better option is instead to price it fairly. You’ll generate more interest and come across as more reasonable, resulting in more interested offers and, potentially, a sale that’s as good or better than you’re asking.

Why Should I Hire a Real Estate Agent?

A natural first step for many people about to enter the real estate market is to find a good real estate agent in Alpine, TX. This all-important step comes with a huge number of benefits—namely having someone on your side who is well-experienced within the market. It’s not every day you buy or sell a home; for a real estate agent, however, this is an everyday occurrence!

Buyers or sellers who decide to jump into the market without an agent might be fine at first, but when it comes down to actually facilitating a sale, they’re quick to become lost. Working with a real estate agent from start to finish is a great way to cover all of your bases and give yourself peace of mind when it comes to this life-changing experience.

Filtering Out the Spam

There can be hundreds of home listings within a 10- or 20-mile radius of you. How do you know which ones to check out, versus which ones to pass up? More than just narrowing down by price, a real estate agent will hand-select potential homes that are ideal for you based on a number of traits. From nearby schools, to amenities offered, to locale and more, an agent will go through the trouble of filtering out unworthy homes, so you can dedicate your time to looking at true prospects.

As a seller, this same benefit applies. Don’t waste time entertaining buyers who aren’t ready to make a serious offer or ones who want to lowball you and see what happens. An agent can be your mouthpiece, turning away these types of interactions so you can sit down with serious buyers only.

Understanding Cost

Whether you’re a buyer or a seller, understanding the pricing game is crucial. When buying, you need to know things like the appraised value of a home, its sales history or the property taxes paid on it over the past year. As a seller, you’ll want to know comparable home values in your area, appraisal value and what break points people stop searching at. All of these variables factor in how much you should offer on a home or how much you should list your home for. A real estate agent in Alpine, TX is your key to getting this information.

Paperwork Duties

Buying or selling a home is a process riddled with paperwork. Unless you want to thoroughly read every single form and try to understand which forms are needed for specific situations, it’s best to put this task on a real estate agent. They’ll provide you with the right forms in a timely manner, so you can move the buying or selling process forward swiftly and accurately.

Answering Your Questions

Both buying and selling are scary prospects! Above all else, a real estate agent will quell your fears by answering any questions you have or providing insight into your decisions. Think of them as a Sherpa who can lead you down a positive path. With a good agent on your side, you’ll avoid the potential pitfalls of a complex, complicated process.

Seven Simple Ways to Boost Your Home’s Value

It’s important to always think about your home as an investment. You put a lot of money into buying one and years later you should be able to sell it for a profit. And while natural real estate appreciation is often enough to drive the value of your home upward over time, it’s also a smart idea to make some upgrades along the way. The more money you put into your home, the more you’ll get out of it when it comes time to list your home for sale in Alpine, TX.

It’s not enough to just funnel money into your living space, however. In order to reap the biggest boon from your investment, it pays to put money into upgrades that will have the highest long-term value and appeal. Take a look at seven simple ways to boost your home’s value and where you should be putting your money for maximum return on investment:

  1. Countertops and cabinets: In spaces like the kitchen and bathroom, countertops and cabinets set the tone. An investment in quartz or other natural stone can dramatically boost the value—both perceived and real—of your home.
  2. Floors: It’s estimated that quality, well-maintained flooring can boost the value of your home by as much as three percent! Natural wood flooring is a clear leader in this area, followed closely by luxury vinyl plank.
  3. Space utilization: Having versatile space in your home is going to raise its appeal and eventual selling price on the market. Why? Because not everyone has the same space demands. A bedroom for you might be a home office for someone else. Keeping spaces versatile means bolstering the appeal of your home with minimal investment.
  4. Efficient installations: The name of the game these days is energy efficiency. You don’t need solar panels affixed to your roof to woo potential homebuyers, but you do need emphasis in other aspects of the home. Energy efficient windows, appliances and even lightbulbs are all valuable ways to boost the dollar figure next to your home’s worth.
  5. Paint: Just about the simplest thing you can do to boost your home’s value and appeal is slapping on a new coat of paint. A good paint job with a tone-neutral color can go a long way towards improving the allure of a space—adding as much as a full percent to your overall home value.
  6. Lighting: Lighting is crucial for comfort and perception in a home. Before you list your home for sale in Alpine, TX, give its perceived value a little bump with the right lighting. Not only can it accent the unique architecture of your home, it’ll also help set the mood and cast light on the nuances of your space.
  7. Fixer-upper items: A well kept home is a happy one, and one that will retain its value for longer. Make yourself a big list of all of the little things you’ve been putting off and get to work fixing or improving them. Each item checked off can add a fraction of a percent back into your home’s value, which adds up fast!

It doesn’t take drastic remodels or major renovations to boost your home’s value. Give some thought to the seven items listed above and see what kind of value you can recoup in your home.

Five Tips for Selling Your Home

If you are putting your home on the market, you may be wondering what you can do to amaze your potential buyers and showcase the very best attributes of your house and property. Even in today’s busy real estate market, effectively staging your home is an essential part of garnering the attention it needs to successfully sell.

There are a number of ways that you can demonstrate your home’s finer characteristics, and showcase the amount of work and dedication you have put into your property. When you work with a qualified realtor in Alpine, TX, they can show you myriad tips and tricks that are guaranteed to help you prepare your abode for the market.

As real estate competition continues to increase, you should work with a realtor in Alpine, TX who can help you identify the tools you need to successfully sell your home. Here are just some of the steps that you can take to improve your home’s marketability:

  • Let there be light: One of the most significant ways that you can accentuate your home’s good qualities is to let the light flow in. If you are going to be hosting a viewing of your home, open up the curtains and let in as much natural light as possible. If there isn’t lots available, use even, warm lighting throughout the home.
  • Put the pets away: When people see pets, they may begin to think of damage. Even if your little fur-baby has always been perfectly behaved, prospective purchasers may be turned off from your home by the presence of an animal. Additionally, you may deter shoppers with allergies from even looking at your house!
  • Clear the closets: Before viewing your home, you should remove half of your clothing from each closet, and carefully organize the remaining clothes. People will inevitably peek into closets and drawers, and removing some clothing beforehand can make them appear to be more spacious.
  • It’s not personal: Your home should look inviting and cozy, but not too personal. For instance, you may want to consider taking down your children’s paintings from the refrigerator prior to a viewing. People coming into your home want to be able to picture themselves living in it!
  • Make sure the price is right: Work with a qualified realtor in Alpine, TX to ensure that your home is priced correctly. If your home is priced too high, you will deter purchasers who may otherwise be interested. Pricing your home too low, however, could also have the same effect by giving buyers the impression that there’s something wrong!

Since 1947, Carpenter Real Estate has sold more than 1 million acres of property in and around Alpine, TX. We are the region’s premier real estate agents. You can trust our talented team to help you prepare your home for market. With more than half a century of experience, we are the most trusted realtors in Alpine, TX. If you are thinking about selling your home, you should reach out to one of our helpful and professional associates. We are here to help you maximize your investment and find an appropriate buyer for your abode!

Four Factors that Affect Your Home’s Sale Price

If you are hoping to sell your home in the near future, you may be wondering how to go about pricing it. Properly pricing your home is key to making a sale, and it’s extremely important that your price is reflective of your home’s true value. While common sense dictates that pricing your home too high will deter purchasers, many people don’t also realize that pricing your home too low will do the same. Working with local real estate agents in Alpine, TX is the best way to accurately assess a fair selling point for your abode.

A number of factors determine the local, state and national real estate prices. Your home’s ultimate selling price will be determined by a variety of factors both within and outside of your control. If you are wondering how you can maximize the investments that you’ve made in your home, you should consult extensively with local real estate agents in Alpine, TX. Here are just some of the factors that will determine the value of your property:

  • Location, location, location: This means the location of your home in the nation, in your state and in your jurisdiction. The selling price of comparable homes in your neighborhood will also greatly affect the final value of your house. Proximity to local schools, shopping centers and transportation modes are all important factors.
  • Appraisal value: Before bringing your home to market, you will have to have it appraised by a qualified professional. Your local real estate agents in Alpine, TX should be able to assist you with finding a fair and accurate appraiser. Appraisers will analyze the size, condition and location of your home, and help you establish its true value.
  • Updates and upgrades: Any updates or upgrades that you have performed on your home in the recent past will greatly contribute to its ultimate value. If there are a few small items in your abode that are in need of fixing, you should address them before bringing your home to market. You may not be able to see a return on investments in large projects, though.
  • Inspection report: Your home must produce a favorable inspection rate to sell at a reasonable price. If there are alarming results from your house’s inspection report, most banks won’t underwrite a mortgage for the purchaser. You should perform an inspection before bringing your home to market to avoid the potential for confusion down the line.

For more than half a century, Carpenter Real Estate has been providing high-quality real estate services throughout the Alpine, TX region. Since 1947, we have sold more than 1 million acres of property. We are the premier local real estate agents in Alpine, TX. You can count on our dedicated and knowledgeable team of real estate professionals to provide you with an accurate assessment of the value of your home. Additionally, we are known for our attention to detail and dedication to customer satisfaction. You can count on us to fairly assess your home’s value, and to sell it rapidly!

What Happens During a Home Inspection

There’s a lot that happens between putting in an offer on a home and actually closing the sale on that house. Perhaps the most important step is the home inspection. This single process could determine whether you move forward with the sale as is, modify the terms of the deal or walk away entirely.

Why Get a Home Inspection?

There’s a big difference between walking through homes for sale in Alpine, TX during an open house and having them thoroughly inspected prior to sale. Not only does the inspection process go deeper than just what you can see, it’s performed by a licensed inspector who inspects for a living. This means the quality and depth of an inspection are encompassing.

Chiefly, the purpose of a home inspection is to give you, the buyer, peace of mind about your upcoming investment. You don’t want to buy a house with a dead furnace or widespread mold! The inspection uncovers these things and puts them out for everyone to see on the negotiating table.

How Does an Inspection Work?

Home inspections cover the entirety of a home, inside and out. They focus on all major parts of the home, including the structure, appliances, amenities, support and the condition of the premises. Most inspection items are graded on a pass/fail basis, or a good/bad/caution system. This helps provide a comprehensive picture of where problems small and large may exist in a home.

An inspector will work methodically through the home, covering first the outside, then the interior, floor by floor, room by room. Pictures are taken and notes are made about the condition of the home in granular detail so that in the end, when everything is compiled, the prospective homebuyer knows exactly what kind of work needs to be done or what problems may be worth negotiating before the deal is done.

What is an Inspector Looking at?

Home inspections can usually be broken down into aesthetic and functional observations, depending on what’s being inspected. For example, an inspection of your furnace is going to be functional—you want to make sure this works properly. On the other hand, inspection of the plaster walls in your living room may be aesthetic—cracks or stains can be fixed and the nature of damage is important to know.

Not all homes for sale in Alpine, TX will have the same inspection checklist, which means inspectors need to tailor their observations to each specific home. For example, if your home lacks a second floor or has in-line water heaters instead of a central unit, the inspection checklist needs to follow the flow of your specific home.

Hire an Expert

More than just cataloging the condition of your home, a professional home inspector is going to give you critical assessment of the conditions you’re about to transact. They can approximate the cost of fixing problems, as well as provide insight into why specific issues are present. In short, they’re a wealth of information when it comes to getting up to speed on the condition of your prospective home.

After a home inspection, you’ll have all of the information you need to buy your home with confidence… or go back to the negotiating table with problems that need to be fixed. An inspection is an all-important step in the home buying process and one that shouldn’t be skipped.

Why Is It Important to Get Your Sewer Scoped Before Buying a Home?

There are a lot of precautions to take before buying property for sale in Alpine, TX. Checking the title of the property for liens, having boundary reports pulled, walking through a home inspection—all of these protect the buyer against making an investment that traps them.

One of the often-overlooked precautions to take before buying a home is to have the sewer line scoped. This is an “out of sight, out of mind” problem that often gets buried under concerns that are more visible, like a malfunctioning furnace or a sinking driveway slab. Nevertheless, it’s critical to have your sewer line scoped before closing on any sort of property transaction deal.

Problems Lurking in Your Sewer Line

What you can’t see in regards to your sewer lines can have dramatic effects on your home and your wallet. There are two chief problems with sewer lines that aren’t always apparent to prospective homebuyers:

  • Clogs in the sewer line caused by sediment buildups or root intrusion
  • Cracks in the line caused by age, root intrusion or earth compaction

Both of these problems can lead to everything from back-flowing effluent coming into your home to waste pouring out into your property, causing soil instability, erosion and contamination. Either way, it’s a messy problem. Even worse, sewer line issues are expensive to remedy, often costing between $5,000 and $10,000 due to all of the excavation, remediation and labor required to set them right again.

How to Tell if You Have Sewer Line Issues

Because sewer lines are buried, they’re hard to inspect. You can’t exactly ask the owner of a property for sale in Alpine, TX if the lines are in good condition, either—they’re not liable to know or, worse yet, they could lie if they know there’s a problem.

The best thing you can do is to have a plumber or a home inspector scope the lines. This means feeding a live-feed camera down into the depths of a sewer line to see if there are any root impediments or debris buildups that may pose problems for you, the potential buyer. If the camera turns up nothing, you’re likely good; if there’s visible damage or the potential for trouble, it might be worth negotiating on repairs or home price.

What Can Be Done About Sewer Line Issues?

Damaged sewer lines need to be replaced—there’s no getting around it. Old clay piping needs to be retrofitted for safer PVC and any damaged junctions or sections of pipe need to be refitted. This requires excavation, which is where the costs start to add up.

For buyers who take the time to scope a sewer line, it’s absolutely worth negotiating with the seller about repairs before the house changes hands, or about lowering the price based on the cost of sewer line repair estimates. If the seller agrees, you’ll want to act fast on repairs once the house is yours. If they decline, it might be time to move on and find a home for sale without such an invasive project.

Purchasing A Home in 2017? Good Schools Should Be Your Top Priority

The complicated process of looking at homes for sale whether you’re looking in Alpine, TX or another area, comes with a lengthy checklist. There are so many things to consider, such as the work commute, the proximity to the nearest Walmart, the strength of your cell reception, the utility costs, the market value of the real estate, and the question of whether or not the place is haunted.

Oh, and don’t forget the educational opportunities available. The ghosts are probably more important, but we’ll focus on the more corporeal of the two for now.

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Alpine, Texas, the Best Climate For Your Dream Home

As good as we’ve gotten at keeping ourselves comfortable no matter the forecast, the weather’s impact on our day-to-day is unavoidable. When exploring real estate for sale, then, a discerning home buyer has to think beyond hardwood floors and marble countertops (though those are important, too) and look at the bigger picture: Are you in for a lot of rainy days? Frigid nights? What are your seasons going to be like, and are you going to be able to live with them year in and year out?

With that in mind, allow us this pitch for Alpine’s glorious averageness. For a lot of things, intermediates aren’t the best (or most interesting) choice, but when it comes to the unavoidable outdoors, they’re like to be your saving grace.

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