If you're thinking of listing your home in Tamaqua or if you're thinking of buying a Tamaqua home, you've no doubt seen offers for free online market evaluations and offers for free mortgage pre-qualifications.
While these don't cost you anything in dollars, they can still cost you too much. The price is in time lost and in having unrealistic expectations lodged in your minds.
First the free home evaluations. While a few might be reasonably accurate, they can be as much as 30 or 40% off – in either direction. If you believe a too high valuation and insist on sticking with it when you offer your Tamaqua home for sale, you're asking for months of frustration and heartache as you wait and hope for a buyer.
If you believe a too low valuation and insist on it, you'll be giving your house away.
Or, that low price could discourage you and prevent you from trying to sell or trying to refinance into a lower interest rate.
Why are they so far off the mark? Because there's much more to a home value than age, square footage, and city.
The computer doesn't know about things like the quality of finishes, a home's condition, the view, the desirability of the school district, the desirability of the neighborhood, or the distance to highways, shopping, recreational facilities, etc. It could compare your house to houses that are vastly different.
Free Mortgage Pre-qualification is a poor idea for two reasons:
- It can lead you down the wrong path in your home search – setting you up for disappointment.
- It can cause you to miss out on a home you really want.
Why? Because pre-qualification is nothing but a guess based on information you provide. Most of those ads are also accompanied by the promise of the lowest interest rate possible. Do be aware that those rates are only offered to a select few.
What you need is a pre-approval. You should get it from a trusted lender who will give it to you in writing along with the interest rate the lender will offer based on your verified information.
With that in hand, you'll know the correct price range for your Tamaqua house hunt. It really is no fun to fall in love with a house and then learn that you can't possibly qualify to buy it.
Why will pre-qualification make you lose out? Because today's sellers want to know the buyer can buy before they accept an offer. Only a pre-approval from a legitimate lender offers that proof. Pre-qualification means absolutely nothing.
The solution?
If you're selling, get a market analysis from a local real estate professional (like me) who knows the neighborhood and knows the homes yours will be compared to.
If you're buying, take the time to get pre-approved with a reputable lender who serves the Tamaqua housing market.
So call me! I can provide you with the market analysis – and I can refer you to local lenders who have served my clients well.
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