Selling your home can feel like a minefield. Between deciding the best time to list your home to determining your sales price, there are many things to consider. Most homeowner’s worst nightmare is selling their home way below value — and losing money in the process. But how do you know what the correct home value is? If you’d like to learn more about working out your home’s value, keep reading to find out.
What Does “Home Market Value” mean?
Market value is the amount that buyers are willing to pay for your home on the open market. Many factors affect how much your home could be worth, with some having more weight than others.
Here is a list of common things that affect home value:
- Location: How close is your home to important amenities like shopping centers and gyms, local schools, hospitals, and highways.
- Neighborhood: What is the average price of homes in your neighborhood?
- Square footage: How large is your home? How many bedrooms and bathrooms does it have? Does it have a strange layout?
- Age of Home: Is your house fairly new, older but renovated, or in need of an update?
- Appliances: How old are your appliances? Are you planning to include them in the sale of your home?
- School district: Is your home near highly rated schools in the area? Is there more than one option?
Other factors can also affect your home’s value; for example, if there is a surplus of buyers and limited home inventory on the market, your home will likely sell for more. Similarly, if homes in your area are hot right now and sales prices are strong, buyers could be willing to pay more for your house.
It’s crucial the price your home accurately. Price it too high, and your buyer pool will reduce significantly. Price it too low, and you could take thousands of dollars out of your own pocket. The optimal price will secure you the most profit in the least amount of time.
Determine Your Home Value With Free Online Estimation Tools
The internet has made it easier than ever to estimate the value of your home. Online tools use algorithms that take into account the sales in your area, local tax assessments, and the trend of home prices over time.
Although online estimates can be helpful, they often give a wide variation of potential values and are not always correct. This is because the estimates rely heavily on public record data. If there isn’t much data available for your particular area, the value estimation can be inaccurate.
Even so, online estimation tools can still be helpful — especially if you want to find out general trends in your housing market. For instance, they may be able to help you determine whether home values are trending up or down in your neighborhood. They can also provide information such as whether you’re currently in a sellers or buyers market.
All of this information can be useful — especially when setting a list price for your home.
Work With a Real Estate Agent To List Your Home at the Optimal Price
If you’re thinking about selling your home, real estate agents are often willing to provide you with a free home valuation report. This report, also known as a CMA (Comparative Market Analysis), gives detailed information about your home and the local area.
Unlike online estimation tools, real estate professions access the multiple listing service (MLS) database to determine the average sales price in your area and how your home compares. They’ll consider things about your home such as its condition, its age, any upgrades you’ve made, as well as all details available via public records. This is a much more accurate way of determining the best list price for your home.