How Much is Your Home Really Worth? Here’s How to Find Out
Do you think it might be the right time to sell your home and move on to someplace new? Whether your current property is no longer what you need, or you simply face a need for cash, the right place to start is with an understanding of your property’s value. How much is it worth? One way to approach this question is to hire a professional appraiser, but such services can be expensive. Consider other ways you can find the information you need.
Gather All the Facts About Your Home
Start with a list of all the important things about the property, from the number of beds and bathrooms to the overall square footage. What upgrades have you performed, if any? How old is the water heater, and what about the health of the air conditioner? In other words, act as your own appraiser by assessing the quality and condition of everything that contributes to the property’s value. This data will be essential.
Find Similar Homes That Found Success with Buyers
Comparables, or comps, are the most important part of many home valuations. This process involves finding homes similar to your own, located nearby or in neighborhoods like yours, and looking to see what prices they fetched on the open market. If you think the value of your home is $500,000 and you see comparable properties that sold for $425,000, you’re probably overvaluing your own space and should readjust your expectations. Professionals use what’s called a “comparative market analysis” to find these answers, but you can still conduct a similar survey on your own using the Internet.
Be as Critical as a Potential Buyer Might
Armed with your understanding of nearby comps, it’s time to assess how your home would stand up to them side by side. Pretend you’re the buyer coming in to look at the house. With everything you know, what would you offer on the home? Doing this can reveal shortcomings that could affect the value of your home. Remember, what fair market value is and what buyers are willing to pay are two different things.
What if you don’t want to face the prospect of haggling with a critical buyer looking for a lower price? You could consider a cash buyer instead, such as Home Flippers. We assess your home in-depth, reflect on the market, and make you a fair offer that reflects the value of your home – without acting as an insult to all the hard work and love you’ve put into the space yourself.
Consider Municipal Valuations versus Real Sale Prices
Before you begin this step, keep in mind that property values established for tax purposes are not always indicative of the fair market price of the home. Given the amount of time that passes from valuation to valuation, it’s best to use municipal information as a starting point, or as an additional factor to help you make determinations, rather than a hard and fast consideration. Consider also looking at the taxable values of comparable homes you identified earlier. This information, combined with everything else you’ve learned, can help you arrive at a reasonable estimate.
Putting a price tag on your home can be tricky, mainly because it is only natural to want to get the best price possible. Understanding the real fair market value of your home can make the process of trying to sell the property much more straightforward. Remember, though, that traditional buyers will look for a price suitable to them as well. Weigh the facts carefully, then begin your efforts to sell in earnest.