Home Valuation: What is your home worth?
If you are interested in selling your home it’s important to know and understand what your home is worth and why. Knowing what your home is worth and listing it close to that figure is your best bet at a successful sale.
Some of the factors that influence value include:
- Home size and age
- Your location and the conditions of the local market
- Comparable homes recently sold
- Renovations and repairs
- Economic conditions
What does market value mean?
Market value is based somewhat on supply and demand, but the simplest way to think about market value is the price at which a house will sell within a reasonable period of time. Some of the contributing factors are listed above, but can also include factors such as curb appeal, updates to your home, your neighborhood, and even your school district.
However, there are also factors out of your control that may influence the market value of your home. Mortgage interest rates, the time of year, and how much people are willing to pay for similar homes in the area. Here are a few ways you can begin to find the value of your home.
Use a free online tool
An easy place to start is to enter your address into a free home value estimator online. In seconds, you’ll receive an estimate of what your home is worth. It’s based on data such as recent home sales in the area and the square footage of your home. Remember, this is just a starting point and will help you with a general idea. For a more exact figure, working with a real estate agent in your area is your best bet!
Get a comparative market analysis
In your initial search, it may be helpful to research homes in your area. Browse a site with MLS listings and look for recent sale prices of homes in your neighborhood that are similar to yours. Typically, you’ll want at least three homes for a valid comparison. A rough estimate of your home’s worth is a good place to start, but the next step for a real answer is a comparative market analysis.
A comparative market analysis, or CMA, is not as detailed as an appraisal, but an agent will be able to provide an estimate for listing purposes. It’s a more in depth comparison and an experienced agent will know exactly what to look for and how to inform you about your home’s value.
Hire a professional appraiser
When you are serious about selling your home, hiring a professional appraiser isn’t just helpful, it’s required. Lenders will want a professional to estimate the value of your home before approving a mortgage. They will evaluate in detail the market, your property, and comparable properties. The information will be delivered in an official report.
Determining the worth of your home will help you decide what you can afford as you look for a new home as well as how to price your current home. It can also be helpful when refinancing or if you decide to take out a home equity line of credit. If you would like more information about the true value of your home, please feel free to reach out to us at