Wondering how much is your house’s worth? Learn how to calculate it.
If you’re planning to sell your home, then you’ve probably wondered the maximum price you can sell it for? One of the major challenges of determining your home’s value is that the term “value” is subjective; one buyer you meet this morning might be willing to pay more than the one you met last week. So how do you find that accurate sweet spot? – meaning a home listing price that will attract many serious buyers and help you meet your real expectations.
The more you know about the pointers that affect the resale value of your house, the easier it is to set realistic expectations for both listing and selling. Some of the most common factors include:
- Home size and age
- Location and area market conditions
- Comparable homes in the area
- Economic conditions, such as interest rate environment
- Renovations and repairs
In this guide, we will break down everything you need to know about the valuation of your house as you get ready to sell.
Online Valuation Tools
If you are thinking how much does your home worth? Looking at an online valuation tool is a no brainer. These online home valuation calculators use the information you give about your home, along with information gathered from public records, to calculate a probable value of your home. They’re a simple, stress-free and convenient way to get an approximate idea of what your property might be worth.
Hire a Realtor
Realtors have their own ways to determine a home’s value. And it’s a helpful way to get a second opinion before blindly following the estimates of an online valuation tool. The process which many realtors proceed to estimate a home’s worth is called Comparative Market Analysis (CMA).
CMA also includes information about “comparable homes” (commonly known as comps). A good CMA guides you through the process and tells you what homes similar to your home are selling for, how long the procedure is taking, and what homes sold for compared to their actual list price.
Work With a Professional Appraisal
As the seller, you’re generally not required to get an appraisal, but it can prove to be a good idea if you don’t want any second-guessing about your home’s worth when you’re ready for the listing.
An appraiser will provide an impartial, carefully researched estimate of your home’s value. They do that by paying a visit to the property and reviewing recently sold or listed comps.
Analyze Your Comps
You can do some of the legwork by yourself as well. Weigh down some of the same factors to compare your house to other comps in your area, including:
- Structural design and features
- Age and size
- Sales history
- Any renovations or improvements
- Overall condition of the property
- Neighborhood and location
- Listing price vs. original sale price
The scene of closing the deal becomes much less intimidating when you head to the market after finding out ‘what is my home worth?’ Remember, the main goal is to sell your home at the right price and at the right time.