If you’re thinking of selling your home anytime soon, one of the most important things you’ll need to consider is its value. As you’re asking yourself the value of your home, there are specific factors that should be considered.
Even if you’re not sure that you’re ready to sell your home, you might be curious as to the value because it’s likely your biggest investment.
What Your Home’s Market Value Is NOT Based On
Your home’s market value is not based on how much you pay each month for your mortgage, nor is it based on any emotional factor. That can be a big issue for sellers—they want to link the emotional value they have to their home to the actual market value. That’s why a Realtor can be so important. A Realtor is independent and non-partial and can help determine market value without emotionality.
Factors That Market Value IS Based On
The following are some of the key factors that do play a role in the market value of your home.
- Location: Of all the factors, this is perhaps the most important. Along with the location comes the safety of the area. Is your neighborhood one with a low crime rate, sidewalks and a general sense of security?
- Curb appeal: Your home’s exterior is the first impression everyone will have of it, so it’s an important factor.
- Square footage
- Layout and number of rooms
- School District
The overall economy is important too, as are things like supply and demand and even the time of year you plan to sell your home. You have to look at similar homes in your area and see which ones buyers were most interested in and willing to pay top dollar for.
How Does a Real Estate Professional Determine the Value of a Home?
When you work with a real estate professional, they use the above factors to determine your home’s market value, but they also do a comparative market analysis. A comparative market analysis will look at similar properties that sold in the past 90 days. A real estate agent will then find comps and average them to get a baseline home value for you.
Why Is the Value of My House Important When Selling?
If you’re asking yourself, “what is the value of my home,” you need to understand why it’s so important to get it right.
If you overestimate the value of your home and you can’t justify why you’re asking so much to a buyer, then your property is likely going to sit on the market. If your home sits on the market for more than 30 days, it can get a bad reputation and buyers and their agents are often suspicious as to why your home hasn’t sold.
If you try to put your home on the market for a price that’s too low to try and get a bidding war to happen, what might actually happen is people see that the price you’ve put it on the market for is what it’s worth. You may be limiting yourself from getting top dollar for your home with this strategy.
How Do You Measure the Value of Your Home?
If you aren’t yet working with a real estate agent or you just want to do your own research, there are different ways you can figure out the value of your home. One of the simplest is to use an online estimator.
Another option is to hire an appraiser. You’ll have to have an appraisal before a mortgage is approved anyway, so you can get a head start by having an appraiser come out before you put it on the market.
If you’re a seller and you’re ready to do a comparative analysis and put your home on the market, contact EffectiveAgents.com, which can also help buyers find the home of their dreams at the right price.