Calculating Your Home's Worth

Written by Posted On Thursday, 10 December 2020 08:43
Calculating Your Home's Worth Calculating Your Home's Worth

Selling your home is a big decision, no matter why you may be considering it. It may seem daunting, and you may have a hard time knowing where to start — especially if it’s your first time selling a home. The worst thing that could happen is that you sell your home for less than it’s worth, which is why you need to know how to calculate your home’s worth.

If you don’t know how to determine your home’s value, you’re not alone. You’d be surprised at how many homeowners are absolutely clueless about what their home is truly worth. 

1. Know What “Home Market Value” Really Means

In simple words, your home’s market value is what buyers will be willing to pay for your home.

As a homeowner, it may be difficult to look at your home the way a buyer would. Keep in mind that a buyer will take extra notice of the following:

  • Location: How close is your home to schools, offices, grocery stores, and highways?
  • Safety: Does your neighborhood have a low crime rate?
  • Curb appeal: Is your house pretty to look at, or does it look outdated?
  • Square footage: How big is your home? Does it have any weird layout issues?
  • Number of rooms: Does the ratio of bathrooms to bedrooms make sense? 
  • Updated appliances: Will the buyer need to replace any appliances?
  • School district: How are the schools rated in your area? Are there multiple options?

As always, there are some things that are out of your control. Here are some factors that will affect your home’s market value with you unable to change anything.

  • Mortgage interest rates: A mortgage is a huge financial commitment, so if the interest rates are high, some buyers will hold back from pulling the trigger. 
  • Time of year: Homes just sell better during certain months than they do in others. For example, most buyers won’t choose to move during the middle of the holiday season or at the beginning of the school year. Expect to get more or fewer offers depending on the time of year.
  • Supply and demand: If there are several houses on the market, you’ve got competition. On the other hand, if there are more interested buyers than there are “For Sale” signs, you can raise the price as more buyers will be interested in buying your home!
  • How similar homes in the area have sold: How much are people willing to pay for a home like yours in your neighborhood? Are there many foreclosures in your area?

2. Use Free Online Tools

If you search for your address on an online real estate marketplace, you’ll find all kinds of facts about your home that are public record, including:

  • Type of home
  • Year the home was built
  • Number of rooms, bedrooms, and bathrooms
  • Square footage of the home
  • Square footage of the lot
  • Heating and cooling systems
  • Number of parking spots
  • How much you and each previous owner paid for the home

Along with these details, you’ll also see an estimated market value. Online tools calculate this number by looking at the sales of homes in the area that are similar to yours, local tax assessments, and whether homes in your area are increasing or decreasing in value over time.

3. Work With An Expert

If you’ve decided to sell your home, get in contact with an agent. Getting help from an expert can make the whole process much easier for you. They can also give you advice on what you need to do and how you can raise your home’s market value.

A good real estate agent will take the time to come and look at your home. They’ll consider the landscaping, the condition of the house, any upgrades you’ve added, and all those things that aren’t listed in public records but make a real difference to potential home buyers.

Your real estate agent will be there to help you with the things that a computer can’t.

 

If you want to know how to accurately calculate your home’s value, you can ask for a free comparative market analysis from a real estate agent that you can trust. A true professional will put service above sales, and they’ll take the time to explain your options. Then you can make the decision that’s right for you.

Rate this item
(0 votes)
Shad Elia

I'm Shad Elia, owner of New England Home Buyers and a real estate investor with more than 10 years experience in rentals, rehabs, and house flipping. Our company buys and sells multiple houses at a time and we have dealt with the good, the bad and the ugly! I've learned a ton over the years and now I'd like to share my experience with other investors, homebuyers and sellers :)

We buy houses As-Is and in cash which means you don't have to clean or make any repairs. We buy with our own funds which allows to close in days and avoid the headache of dealing with appraisers, banks and inspections. If you need to sell your house fast in Massachusetts then reach out to us for a free no-obligation cash offer!

https://www.webuyhouseshere.com

Agent Resource

How to capture your next prospect - click here

Realty Times

From buying and selling advice for consumers to money-making tips for Agents, our content, updated daily, has made Realty Times® a must-read, and see, for anyone involved in Real Estate.