How Much is Your Home REALLY Worth?
If you’re looking to sell your home, your first thought is probably: how much is my home really worth and what can I reasonably get for it? This isn’t always easy on first glance. It’s always best to hire a real estate professional to figure this out for you. They take into account local market conditions, sale prices from homes in your neighborhood, the age and condition of your home, its location, and much more.
But in the meantime, it’s good to do some research on your own.
The Bottom Line
Ultimately, your home’s value will depend on what a buyer is willing to pay and what you as the seller are willing to accept. When a buyer and seller can agree on a price, that amount accurately reflects the home’s current market value. That being said, there’s no straightforward formula for determining what that value is.
Prices and valuations differ, sometimes drastically, and the only way buyers and sellers can decide which figure best represents the home’s true market value is to take a good long look at the data and comps before calculating a number.
Get a Free Comparative Market Analysis
Start by asking a real estate agent in your area for a comparative market analysis, or CMA. Most agents do this for free in the hopes that they can get your listing if and when you do decide to sell your house. The agent will pull all data about recent sales of comparable houses in your neighborhood. They will then consider the neighborhood, special characteristics of your property, age and condition of the home, and more in order to estimate value. This will give you a concrete number as a jumping off point.
Check Online Valuation tools
You can also go online and use the many home price estimators that are available. Keep in mind, these aren’t as reliable as the CMA you would get from a live real estate professional. But they can be helpful in giving you some guidance. Such online tools utilize algorithms and publicly-available data, such as tax assessments, recent sales, and other public records in an effort to come up with an estimate.
Do Your Research
You should familiarize yourself with what “home market value” really means. Contrary to popular belief, your home’s market value is not based on:
- Your monthly mortgage payment
- Your opinion of how awesome your home is
- Your memories of your home
On the other hand, your home’s market value is what buyers are willing to pay for your home. We understand it’s difficult to see your home the way a buyer would. Although you may think little Jenny’s handprints in the front walk pavement are adorable, potential buyers only see it as one more thing they will have to fix.
Serious buyers will take note of the following:
- Location: How close the home is to highways, schools and shopping centers.
- Safety: Whether or not the neighborhood has sidewalks, underground electrical lines and a low crime rate.
- Curb appeal: Is the home nice to look at or an outdated eyesore?
- Square footage: They want to know how big your home is and if it has any odd layout issues.
- Number of rooms: The ratio of bathrooms to bedrooms: does it gel with their needs?
- Updated appliances: They will be wondering if they have to plan for the cost of a new fridge, dishwasher, etc.
- School district: School ratings in the neighborhood, what options there are, etc.
If you’re looking to sell your home, an experienced real estate agent can assist you in analyzing all this information and more to develop your ideal listing price.
Contact Berkshire Hathaway Premier Properties
To get started on the selling process, give us a call at 832-626-4889. Our experts can help you determine an accurate selling price that is competitive in today’s real estate landscape.