The real estate market continues to dominate the news. Low interest rates, few homes for sale, and demand for homes caused home values to increase by record numbers in some markets.
Experts predict that home values will jump another 11% in 2022.
If you’re thinking about selling your home to capitalize on the hot market, you’re probably wondering how to figure out the home value.
It’s the starting point of the sales process and it can determine the success or failure of the sale. If you think, “I value my property way more than the experts say,” then your home will sit on the market.
Price it just right and you’ll get a bidding war. Do you want to learn how to accurately assess the resell value of your home?
Keep reading to learn how to assess the value of your home.
1. House Value Factors
There are a ton of factors that go into the value of your property. For starters, your location can make a big difference between a 24% home value increase and a 7% increase.
That’s only the average for a given metro area, though. The homes in your neighborhood might have a higher or lower value than the ones a few blocks away.
One of the main things that real estate agents look at when deciding on the resell value is comps. Comps consist of an average sales price of similar properties in the last three months.
The property size is another factor. Home prices are determined by square footage. When you calculate the square footage, include only the usable space.
A 500 square foot garage shouldn’t get added to the usable space.
Is the home in good condition? A new roof, HVAC unit, or water heater can add thousands and save buyers from replacing these items immediately after moving in.
Are you under pressure to sell? This could affect the resell value of the home. That’s because you’ll need to find a cash buyer for a quick sale. They might make an offer slightly below market value, but you’ll complete the sale very quickly.
2. Do Your Own Comps
Get a ballpark figure for the value of your home by doing your own comps. Take a look at real estate sites and find the most recently sold listings that are similar to your property.
What comps don’t tell you is whether sellers made concessions or not. Something might have come up during the home inspection that forced the seller to drop the price by a few thousand dollars.
Make a copy of the comps you used because they’re available for a short period of time.
Homeowners usually think that their house is worth more than it really is. Make sure you compare homes like yours in the area.
Don’t compare your home to the million-dollar homes a couple of miles away. They’re sure to throw your comps way off.
3. Look at Tax Assessment
The assessed value is used by local tax authorities to determine the value of the home. This is based on the fair market value and several other factors, such as recent repairs and renovations.
The assessed value of the home is usually below the resell value of the home. Use this as a data point, and not as a final determining factor.
4. Get an Appraisal
If you want a professional estimate of the home value done, hire an appraiser. The appraiser usually works for buyers or mortgage lenders to make sure the value of the home is in line with the home loan amount.
Lenders generally won’t approve a loan that’s higher than the value of the home.
Having a professional appraisal does cost about $350, but you know you’ll get an accurate picture of the property value. Appraisers are certified to operate in your state and they have to be objective in their work.
5. Try the Internet
The internet has plenty of sites that offer home value appraisals. Zillow, Realtor, Chase, Redfin, and RE/Max are just a few examples.
These sites provide free estimates based on their algorithms and the information you enter about your home. They’re free and a quick way to get a home estimate.
Are they accurate? Don’t count on it. It will give you another data point to work from as you find the value of your home.
For homeowners that need to offload the home as soon as possible, there are sites that cater to your needs. If you’re saying to yourself, “I need to sell my house fast online,” this is the option for you.
You’ll enter some basic information get a quote immediately. You’ll be able to sell the home for cash and get it done quickly.
6. Get Comps From Real Estate Agents
Contact local real estate agents for a CMA. This is a comparative market analysis. This is the professional version of a comps analysis.
This is the best option if you’re planning to sell your home. Agents offer a free CMA hoping to land you as a real estate client. You’ll be able to connect with agents and find one to work with.
Real estate agents don’t always use the same information to come up with a home value. That can leave you frustrated if you have a big disparity between CMAs.
When you compare the CMA to your own assessment and other data points, you’ll be able to set the best price for your home.
How Do I Value My Property?
You don’t need to ask, “How do I value my property?” You just learned six methods for getting an accurate picture of your property’s value.
Don’t rely on just one to determine the resell value of your home. Pick a few of them and compare them to set a price so your home sells quickly.
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