Selling your home may be an effective way to lock in the equity that you have built up in the property. It can also be worthwhile when you have to move and can’t afford to make a mortgage payment on two properties. If you are looking to sell your home, how do you determine how much it’s worth?
Look at Recent Sales Data
If a home has recently sold in your neighborhood, be sure to take a look at its sale price. Then, be sure to compare the size and features of that home to yours. Let’s say a home that is 1,500 square feet with three bedrooms and a deck just sold for $150,000. Assuming that your home also is 1,500 square feet, has three bedrooms and a deck, you should list it for around $150,000.
Have a Real Estate Agent Appraise the Home
Having a home real estate professional appraise your home can give you a good idea of what it is worth. This person will understand what buyers are looking for and whether a house has those items. For instance, homes with a third bedroom tend to sell better than those with two bedrooms. Homes with a pool can be harder to sell because of the extra maintenance required. These variables will all go into a professional appraisal.
How Much Is the Average Home Worth in Your Area?
You can look at average home values in your area to determine how much your property is worth. If you know that home prices have appreciated 5 percent since you purchased your property for $100,000, you can reasonably expect your home to be worth about $105,000. Price appreciation data can be found online or by asking local housing officials.
Trial-and-Error Can Be a Last Resort
If you truly aren’t sure how much your home is worth, try putting it on the market at a given price point and gauge the reaction to the listing. In the event that you get a lot of responses, you have likely priced the home at or below what its true market value is. However, if you get few responses, your preferred price point is likely higher than the home’s true market value.
There are many good reasons to determine the value of your home before listing it for sale. By pricing it in line with market expectations, the odds are good that the home will sell in a timely manner. This is important because homes tend to sell for less the longer that they are available.
