How Much is My Home Worth?
To determine the value of your home you should contact a real estate agent. However, it’s not “Rocket Science”. Still, you need to know the determining factors for a Current Market Analysis. The key word here being “Current”.
How to Determine Current Market Value
The “Sales Comparison Approach” is probably the simplest method to determine the value of your home. However, this requires having access to current data and knowing how to interpret trends. Here is some information you will need:
Comps – This is just short for “comparisons” or “comparative”. In other words, you try to find a home that is similar to yours, the “subject property”. Unfortunately, unless you live in a “cookie cutter” subdivision chances are pretty good you’re not going to find a home just like yours. Also, these need to be “sold” comps, not those currently listed on the market. This is what real estate agents and appraisers use from the MLS. DO NOT COMPARE YOUR HOME VALUE TO LISTED PRICES. It is the “sold” price that determines what knowledgeable buyers are willing pay.
Adjustments – Once you have found a comp similar to your property, it’s time to start making adjustments. Things to consider are:
- age of home
- condition of home
- number of bedrooms and bathrooms
- square footage
- garage/carport (attached, detached)
- size of lot (wooded, cleared)
- frontage (views, lake, street, etc)
- location (near town, country club, remote, gravel or paved road, HOA, etc)
- other improvements (generator, a/c, etc.)
You can use a Uniform Residential Appraisal Report to help you see how determine the value of your home. However, unless you are familiar with these values and their differences it may be unwise to try to make such adjustments.
Unfortunately, sentimental value carries no monetary value. This is where most homeowners have a hard time separating their feelings from the reality of what a home buyer is willing to pay.
Tax Assessment – This IS NOT a good factor in determining the value of your home. For example, here in Macon and Jackson Counties of NC, property tax does not have to be re-assessed for every 8 years. Property values may rise or fall and current assessment can be quite different from the current market values. Macon County just raised their tax rate in 2015. Jackson County may also show an increase in millage rate coming soon.
Real Estate Market Trends – You should know the current market trend. Is it rising, falling or holding steady. This, too, will help you determine the current value of your home.
Motivation – Why are you wanting to sell? How soon do you want your home sold? These are factors to determine as well.
Selling Your Home
Your Real Estate Agent is the best source for helping you to determine the value of your home. Remember, they’re not your enemy. They want to sell your home for as much as possible. Their salary and profession depend upon that. However, an over priced home does no one any good. It sits on the market, becomes known as an overpriced home and other agents may not show it. It wouldn’t be fair to their potential buyers. So what do you do? Hire a Professional.
A Real Estate Agent is here to help you. Their knowledge and activity in the Real Estate World is what helps you get your home sold. Yes, they do charge a fee for their services, but think of it this way; you can hire a professional painter to paint your house or you can get your neighbor to do it and maybe save some money. However, which would give you the better and/or desired results?
Hire a real estate agent to help you determine the value of your home.
Please share your comments below on how you determine the value of your home.