It is the question that virtually every homeowner wants answered when they go to sell their house. Getting the right answer to this question can have a big effect on many decisions. Market conditions can cause this number to fluctuate, sometimes significantly. With so many factors going into coming up with an accurate answer, it is good to collaborate with multiple sources when determining the value of your house.
Ultimately, as with anything that is for sale, the real value is determined by what someone is willing to pay.
Below you will find a few basic guidelines for finding out how much your house is worth.
There is a reason that people use the expression “location, location, location”. It would be hard to overemphasize the importance of location when determining value for a piece of real estate. There are times when just being across the street can impact your value for good or bad. When comparisons are run on comparable homes it will usually be based on your particular location. This is one of those factors that cannot be changed. Your house is where it is.
The size of your home is measured in square feet. The usable square footage of your house in addition to the floor plan or overall layout dictates how much your house is worth. Obviously a home with more space that is under a roof and heated and cooled will be worth more than a home with less space. If a significant amount of space is undivided and able only to be used for one purpose then that may affect the price as well. In contrast, if the space is divided into very small spaces that limit usage then that may affect value too.
Amenities or Features
Amenities can include a huge variety of items that affect a home’s value. There can be amenities based on location. For instance, does the home have a particularly pleasant view? Is it located on a golf course, greenway, or river? Is it located in a desirable or up and coming section of the city? Is it on a cul de sac or dead end street?
Features can be based on the actual home structure. Is the home constructed from brick or stone? What type of siding is on the house? Is it colonial style or a rancher? Is it a log house? Is the main construction material considered maintenance free? The roofing material can be an additional factor to the pricing equation. Is the roof metal, or slate? Will it need to be replaced frequently?
There are energy features, handicap features, and features the are specific to the yard. Does the home include a swimming pool or fire pit?
Amenities are not limited to the structure, they also include the bathroom, bedroom, and kitchen design and updates.
Conditional elements do not typically add value but they certainly can subtract value. Foundation problems, roofing repairs, electrical troubles, septic problems, and plumbing issues all can negatively impact a home’s value. Fixing these problems will not normally make your home worth more they will simply make it possible for you to be able to list your house with an agent for the opportunity to sell it.
The condition of the rooms matters as well. Do the kitchen and bathrooms need to updated? Does the house need a fresh coat of paint? Are there holes in the walls that need repair? Does the drywall need to be patched in spots? Is it time to replace the flooring?
The condition of all of these elements will affect the worth.
This is one of the factors that is completely out of your control. The real estate market has gone through some wild swings over the past few years. Many homeowners have found themselves upside down in what they thought was a no lose investment. Historically there have been three types of real estate markets, buyer’s markets, seller’s markets, and balanced markets.
As a homeowner you hope for a seller’s market, but in recent times those have been scarce.
How Much Is My House Worth? Online Estimation Tools
The internet has many helpful tools when it comes to finding a ballpark figure of what your home is worth. Typically the website linked below update their information on a weekly basis. The sites determine the home value figures by a set of calculations based on various pieces of information that are compiled from public sources.
Many people find that when an appraiser actually provides an actual appraised value for their house it can be significantly different than the value listed on these websites. Please keep in mind that the price listed on the websites should serve only as estimates not as hard and fast prices.
With that in mind, here are a few websites that provide a tool for estimating your home’s worth.
Zillow – Zillow provides what they call a “Zestimate® home valuation”. It is important to remember that this estimate is only a place to start in your effort to determine how much your home is worth. Zillow provides an estimate of your home’s market value using a proprietary computed formula. The information they use is gathered from public data and data that website users submit. Their calculations take into account location, current conditions in the housing market, and the home’s amenities and features.
ZipRealty – ZipRealty also provides an online home value estimation tool. It works very similarly to the tools you will find at Zillow.
Another option for finding out what your home is worth is to request an all cash offer from us at Fastlane Property. As with any offer it is a no strings attached, no obligation offer. It will give you a good idea of the fair market price for your house or property. We can buy your house in as little as 7 days and save you the expense of repairs, realtor fees and commissions, and the headaches of negotiating with potential buyers.
Professional Appraisal or CMA
The simplest way to figure out actual value of your home is to have an appraisal or Comparable Market Analysis done by a realty professional. Real estate appraisers can come and do an appraisal of your house. A full appraisal normally costs around five hundred dollars and is not recommended unless you are actually selling or refinancing your house.
A realtor can complete a comparative market analysis or CMA on your home in order to get a comprehensive estimate of what your house could possibly sell for. A comparative market analysis is an analysis that compares comparable homes in your local area and what they actually sold for. The realty professional will increase or reduce your value based upon the features and square footage your home has when compared to others in your local market. Real estate agents normally only do this when they are under contract with a client and are preparing their property for listing. It is unreasonable to expect a realtor to perform a comparative market analysis just in order for you to merely know what your home is worth.
In the end your home is worth whatever a buyer is willing to pay for it. Any price other than that is just an estimate. Your financial and time constraints will play a significant role in the pricing of your home.
Why You Should Research Home Values
Staying abreast of your home’s value will help you to make wise financial decisions. Your home is one of your biggest financial assets and its value will impact the choices you make. You need to know how much your house is worth in the event that you are going to sell or refinance your property.
If you find yourself going through financial difficulty you may need to sell your home to relieve yourself of the mortgage payments. Having an idea of what your home is worth can help you to get a fair price from an investor looking to purchase your house quickly.
What Your Home Value Affects
Perhaps you aren’t currently looking to sell your home and you’re wondering why you’d even need to know what its value is. But there are many circumstances in which the value of your home is pertinent to your financial standing.
It Affects Your Insurance Costs.
The value of your home dictates the premium on your homeowner’s insurance. If your value has changed significantly you should make sure this reflects accurately on your policy. If your value has gone done you may be paying too much for coverage and if your value has increased you may not have enough coverage on your home.
Your Taxes Are Based on This Value
The property taxes you pay annually are calculated off of your home’s estimated value. Just like with insurance, you want to watch for what your house is worth and verify that it corresponds with what your county is reporting for taxes.
Your Home Value Can Impact Refinancing
You need equity in your home to be able to refinance your mortgage. Your home value will dictate whether or not your loan application will be approved and if a refinance is possible.
You Can Over Enhance Your Home
Doing renovations and upgrades in your home at great for enjoying your property and increasing its resale value. However, you don’t increase the value of your home to the point where you are priced out of your neighborhood. It will be hard to find comparable homes and inevitably the homes around you will drive down your value. It will also make it harder to find buyers who can afford your home in that specific area.
If you would like to have a free, fair, no obligation quote on what a real estate investor would pay for your property call us today at 865-213-5286