Useful Seller Information and Frequently Asked Questions

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How Much is My Home Worth?

When selling a home, the question should not be how much is my home worth but how much will I get from the sale of my home. In real estate terms, a home is worth what a ready willing and able person is willing to pay for it. Since this number will vary greatly between markets, one can only estimate what a home will sell for in the near future. If there are very few competing homes, a home will probably sell for more than in a market where there are many homes for sale. As your Realtor, I can provide you with detailed information about the current market conditions and how this will affect the sale of your home.

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What is a Comparative Market Analysis (CMA)?

A Comparative Market Analysis (CMA) is a comparison of homes recently sold, under contract and on the market. Comparing homes is useful when determining the market value of a property. Market value is defined as the price a ready willing and able buyer is ready to pay for a property. By analyzing what homes have and are going for, it is easier to predict the home's market value.

In contrast to an appraisal, a CMA is usually completed by a real estate agent and not by a licensed appraiser. A CMA tends to be very time and market specific since it considers recent transactions, supply and demand and intangibles such as layout, views, location within a neighborhood and curb appeal. A CMA is very sensitive to changing market conditions and thus a CMA's estimate market value will change with the market.

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What is an Appraisal?

An appraisal is a step-by-step analysis undertaken by a professional appraiser for the purpose of accurately estimating an opinion of value. When a mortgage loan is made, the loan is secured by the real estate. Lenders want to be reasonably sure the amount of the loan does not exceed the value of the real estate. For this reason, the lender normally requires a professional appraiser to estimate the value of the property.

An appraisal is different that a CMA in that it only considers homes that have sold within the last 6 months. An appraisal also requires that a dollar amount be used to compare two homes. For this reason, an appraisal is less likely to be influenced by a home's style, curb appeal, layout and other less tangible characteristics. Since an appraisal does not compare homes that are currently on the market, it tends to be less sensitive to rapidly changing market conditions. In a rapidly increasing market, an appraisal can be considered the low range of market value while in a rapidly decreasing market, an appraisal can be considered the high range of market value.

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What is Title Insurance ?

You should realize whenever you buy property, that the owner who is selling it to you has extremely strong rights, as do his family and heirs. Also, there may be others in addition to the owners who have rights in the property you are going to buy. These may be governmental bodies, contractors, or individuals who have unpaid claims against the property.

Anyone who has such a claim is, in a sense, a part owner. The property may be sold to you without the party who has a claim knowing about the sale. And you may know nothing about such a claim at the time you buy. It doesn’t matter. These claims may remain attached to the real estate you have purchased.

Will you get a clear title? It is of the greatest importance that you do. But this means that you must be informed about any of these claims against your land so that you can make certain they are cleared up before you buy. And that means that you must be protected against any undiscovered claims that may arise in the future to threaten your title and the possession of your property. Title insurance provides this two-fold protection.

You learn what claims there are against the property by a search of the public records. This is the first step the title insurance company takes in order to insure your title. Some of the things a title search uncovers are any unpaid taxes or mortgages; judgments against previous owners, easements, mechanics leins, and any other court actions or recorded documents, which can affect title to real estate. The title insurance company finds and reports such defects in title so that these matters can be corrected and cleared up.

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What is an Improvement Location Certificate?

Before a subdivision is developed, the developer usually creates a land survey plat. This land survey plat includes a scale drawing of the boundaries of a parcel of land which is complied by a series of exact and precise linear and angular measurements taken from a known point of origin developed by mathematical principals of surveying. The purpose of the land survey plat is to determine, locate and or restore any real property boundaries. The land survey plat will also indicate any conflicting boundary evidence and any recorded and/or apparent rights-of-way or easements.

The improvement survey plat is comprised of the same precise information as is the land survey plat mentioned above, and in addition indicates the location of all structure and improvements situated on the parcel of land. The improvement survey plat will also show visible encroachments. It will show any fences, hedges, or walls on or within two feet of both sides of all boundaries. The improvement survey plat will show the location of all visible above ground utilities, and all underground utilities for which there is visible surface evidence.

The improvement location certificate is another method of describing and approximately locating property, that is often required by lenders and insurance companies. It offers certain reasonable assurances regarding potential boundary or encroachment problems that may affect their interests. It also illustrates the location of improvements and conditions of the property. However, it is based on assumptions regarding boundary location and is not a precise survey. The improvement location certificate is typically used in the purchase of single family residential property located within the established subdivided urban and suburban areas of Colorado.

WHAT THE IMPROVEMENT LOCATION CERTIFICATE IS:

a. It is a representation of boundaries and improvements based on a surveyor's general knowledge of a given area.
b. It is a depiction of the property boundaries showing the size and shape of a parcel which is based on the legal description provided in the warranty deed.
c. It is a document that must be signed and sealed by a professional land surveyor who has certain professional responsibilities for its accuracy.
d. It is a representation of the location of improvements, encroachments and easements based on their relationship to a reasonable estimate of the location of property lines.

WHAT THE IMPROVEMENT LOCATION CERTIFICATE IS NOT:

a. It is not a survey.
b. It does not locate exact boundaries.
c. It does not establish property corners.
d. It is not to be legally relied upon for locations of property lines or future improvements.

Sometimes the improvement location certificate will indicate a possible encroachment or some other evidence of a boundary dispute. In this case, a true survey, (i.e. improvement survey plat or land survey plat) would be required to clarify or resolve any discrepancies.

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How do I Prepare my Home for Showings?

With buyers, first impressions count. A small investment in time and money will give your home an edge over other listings when the time comes to show it to a prospective buyer. Here are some suggestions that will help you to get top market value.

General Maintenance -- Curb Appeal -- Reassure the Buyer that your home has been well maintained

Spic and Span -- The Buying Atmosphere -- Allow the Buyer to see your home, not your belongings

The First Impression -- The Spacious Look

Safety

Common Inspection Complaints -- Address Them Before Listing

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