How do I determine the fair market value of an inherited home? One of the most important steps in the house-selling game is pricing your house right.

How to Price your Inherited Home in Cincinnati for Sale

Did you inherit a property that you’re now thinking about selling in Cincinnati? One way to find out a property’s fair market value is to use Comparables (also known as Comps). Comparables are an important part of estimating the current market value of your home. It is popular among real estate professionals and homebuyers. Comps are regarded as the best tool in determining a home’s value outside of a formal property appraiser. They compare criteria from recently-sold properties in a certain neighborhood, such as the sale price, location, age and condition of the house, number of bedrooms, baths, amenities, lot size and square footage.

There are a great number of online tools that can help you prepare a Comparative Market Analysis (CMA) so you can accurately determine the list price for your home.

Zillow (Zillow.com)

The site provides a big amount of data, like information about the price, bedrooms, baths, square footage, lot size and the year the house was built as well as the price per square foot for the building and for the land. You have the ability to customize the estimate and choose your own list of up to ten comps from a list of 50 comparables.

The main feature of the Zillow report is “Zestimate,” the site’s estimation of a property’s value

RealEstate ABC (realestateabc.com)

RealEstate ABC is one of the free alternatives to Zillow, where all you have to do is enter the property’s address and just like Zillow it will return a Google map and a list of comparables.

One of the nice features it offers is returning a list of potentially comparable homes that you can select from to be included or not in the valuation. The idea comes from assuming that you know which homes in your neighborhood are similar to your house and which are not.

Eppraisal (eppraisal.com)

Besides the classic home valuations, like data on comparable homes, recent sales, neighborhood details, and local market trends, Eppraisal also provides demographic data about the neighborhood, like education, finances, and employment.

Redfin (redfin.com)

With Redfin, you can enter a handful of details about any property and learn about the local neighborhood, the “walkability” of a property, and how much property taxes cost each year.

There are also paid options to the above-mentioned tools, websites that charge a fee for the online appraisal, however, as we have not tested any of these sites we cannot advise you if their valuation is accurate or not.

If you try estimating the same property using all the above systems you will probably find that each website will give a different valuation depending on the algorithm used and on the sets of comps taken into account; nonetheless, you will get a pretty good idea of your property’s value.

Professional Appraisals

Another method to establish the value of your inherited property is to hire a licensed real estate appraiser. Appraisers have no reason to inflate a valuation. You will most likely have to get an appraisal if the real estate is commercial property or a duplex, an apartment building or any other type of income-producing residential property. These types of assets are more difficult to be accurately valued as there are lots of comparable sales that have to be taken into consideration.

You will probably have to pay $300-$500 for a professional appraisal. For this fee, the appraiser will provide you a written report detailing the value of the property, as well as details of how and why this value was determined.

Home pricing is more of a science than an art and should only be based on the cold, hard data. Crunching the numbers is always the better route if you want to get an accurate home price.

No matter the tool you are familiar with for house pricing don’t forget that in Ohio, like in other states, an asset is inherited with a basis equal to its date of death value, so your need to evaluate the property even more since all heirs/beneficiaries will have to pay taxes only on the capital gains. Let’s assume that you inherit a house from Ann that bought the property almost 40 years ago, in 1980 for $70,000. Ann passed away in 2017. To find out the value of the estate at Ann’s date of death you have to hire a real estate certified appraiser, for the specific area, the house is located in. This certified appraiser’s house evaluation is the only one accepted by the court of law. If the appraiser evaluates the house at $400,000 this amount will be taken into consideration for taxing the capital gains for all the heirs/beneficiaries and not the $70,000. This evaluation will also give you a strong indication on how to price the house.

At the end of the formal probation process, required by the State of Ohio the inherited real estate can be sold quickly as is, without any additional time and cash investment with the support of a company like ASAP Properties, LLC, your preferred home cash buyer.

If you’re ready to sell your inherited house in Cincinnati give us a call at 513-549-4145 or fill out the form and will get you a fair cash offer within 24 hours.

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