In today’s market, it’s more important than ever to price your home right. We know how to price your property to make sure it sells. If you’re curious about your home’s value in today’s market, just fill out the form below to get an idea of what your home is worth. If you’re thinking of selling soon, you’d want to talk to a real estate agent and chat through ways to prepare your property ready to sell. There are some steps prior to selling that can ensure that you gain a premium for your home so it’s always beneficial to speak to your Real Estate Agent about your options at least a year before you plan to list your home to sell so that you can make a plan of action.
Due to MLS rules, this tool depends on active listings to give you an idea on what your home might be worth. Agents have access to sold listings data, market statistics and additional information that can contribute to a much more accurate estimate—access to this information is as easy as signing up!
Finally An Answer To, “What’s My Home Worth”
If you’re planning to sell a property, the first thing to ask is what’s my home worth?
Whether you’re asking What’s my Davenport Fl home worth or whats my home worth in Kissimmee – the process is the same. What you paid for it two or five years ago is sure to be different today. There are several factors that affect property value.
Do a quick online search for ‘what’s my home worth’ and several search results will tell you that the condition and price are not the only deciding factor.
There are simple and not-so-simple ways to answer the question on home worth.
The simple answer is: A house is worth whatever someone is willing to pay for it.
Of course, things are not as easy or as simple as this. You also need to know its fair market value because that will dictate how much profit you’ll make. It will also help you determine your property’s equity and investment strength. The biggest challenge with determining your home’s value is that it is somewhat subjective. If you were to ask, “what’s my home worth?” to a real estate agent, an appraiser, or a county tax assessor, you’ll likely get different answers from them. While some of the data points cannot be taken subjectively, the interpretation of the differences between your home and what has sold can be. Knowing how to calculate your home’s value will prepare you for when you decide to sell, buy, or refinance your home. It may also help you tap into your home’s equity and negotiate lower property taxes.
Factors that influence your home value
Several factors may affect the value of a property. Here are just some of them.
- Home size (Square Footage)
- Location (subdivision and/or 1 mile radius around the home)
- Local market conditions
- Comparable homes – homes that have sold recently
- Renovations and repairs
Once you determine all the factors that influence your home’s value, it will be easier to establish more realistic expectations.
How to answer the question, “What’s My Home Worth?”
When you’re trying to determine what your home is worth you ultimately have to look at what has already sold. Although that information is public it’s often hard to get and slow to be published. So where do you start?
If you just need a “ballpark” answer on your home’s value – home value estimator tools are your friends
A quick online search on how to determine your home’s value will give you a list of home value estimator tools, including ours! According to a survey, 22% of homeowners in the U.S. used some type of online home value estimator tool to determine the value of their home. These automated valuation model (AVM) tools are typically offered by most lenders or real estate websites. AVM tools use public records, such as deeds of ownership, property transfers, and tax assessments, as well as some mathematical modeling, to try and predict the value of your home. So, the recent listing prices and sales in your area will have a significant impact on your home’s market value.
According to David Rasmussen, the senior vice president of operations at Veros Real Estate Solutions, most AVMs on real estate websites are generally for lead generation and marketing purposes. They will return a value for just about any property even when there is limited data. In doing so, the accuracy of the result is watered down. The challenge is that a robot cannot tell if your home and the one that sold in a mile radius is similar. It can match square footage, age, even declared architecture, but it can’t see the condition or other factors. As a result, even the most popular real estate site has a disclaimer about how grossly inaccurate it is.
Pro: Quick and relatively easy
Con: Highly inaccurate
Get a professional comparative market analysis (CMA) from a real estate agent
A CMA is used to examine the prices of similar properties that have been recently sold within the same area. Asking a local real estate expert like Vacay & Co Real Estate for a CMA will give you a really good idea about your home’s fair market value. Real estate agents perform a comparative market analysis to match your home to comparable properties. This helps create a statistical breakdown of what your property may be worth in comparison to nearby properties with similar or matching features. This will help you determine the price to list when selling or the price to offer when buying a home. Although it’s not as detailed or as accurate as a professional appraisal, it is quite helpful when listing a property.
Pro: Highly accurate, incorporates the current real estate market.
Con: Requires an experienced full-time real estate agent
Seek the help of a professional home appraiser
Banks and other lenders require an appraisal before a mortgage is approved. Hiring a professional property appraiser is a better way to get your home appraised. In fact, about 28% of Americans had their home’s value appraised by a professional. Given the convenience of doing so, this shouldn’t come as a surprise. The cost for a complete appraisal will vary depending on the property.
For example, the appraisal rate is higher for larger and more expensive homes. It is part of an appraiser’s responsibility to provide a thoroughly researched estimate of a property’s value based on several factors, including:
The city, region, and neighborhood where the property is located Features and amenities of a property, such as decks, pool, or fireplace Listing, sales, cost, depreciation, vacancies, and other factors for similar properties in the same market Condition of the property, including utility services, heating, and air systems, windows, doors, and other fixtures.
Whether the property is located in a FEMA flood zone The type of foundation the property sits on Whether any improvements or additional repairs are needed Signs of damage that can seriously compromise the structural soundness of the property, including any damages or structural repairs that have been made Don’t forget to ask the appraiser for a copy of the report when the assessment concludes.
Pro: Very detailed and accurate report.
Con: There is a cost associated with the report and if you buy one for yourself you can’t use it for anything else, doesn’t take into account competition.
DIY Home Value
Your home’s value starts and ends with comparing your home to other homes that have sold. When comparing, look for properties with similar features as your house, such as location, size, upgrades, and condition. Here are some simple ways to help get you started.
Browse sites that display MLS listings can help you find the recent sale prices of comparable properties found in your neighborhood. Look at listing prices as a good alternative to pulling comps when there aren’t enough recent sales to look at. However, do take note that they may not be realistic. To find out the market value of your property, you will need to come up with at least three valid comps. Finding comparable properties is the easy part.
Once you have a list of homes that have sold, that’s when things get tricky. You will have to make adjustments for the differences between the comps and your house. For example, you’ll need to add or subtract value to comps with more or fewer bedrooms than your property. You also need to check if the interior is outdated to make necessary adjustments.
Additionally, the conditions in your market largely affect how much you add or deduct to the value of the comp. A rough estimate of the value of your home should be somewhere in between your lowest and highest comps.
Pro: The joy of learning real estate
Con: Time consuming, highly inaccurate,
So What Is Your Home Value?
There are different methods to answer the question ‘what’s my home worth’ that you can do yourself. Some of these methods include using online valuation tools, running comparative market analysis, and evaluating comps.
If, however, you want a more accurate result, you can always hire a professional real estate agent who is trained not only to help you determine the value but also knows what the current market conditions are.
Additionally, by knowing how to calculate the value of a property correctly, you can easily determine what you can afford and evaluate whether a property listing is reasonably priced or not. From there, you can decide how to price your property.
You may also be rewarded with a lower tax bill if you can prove that an assessment is way higher than it should be by pulling comps.
Click below to request a QUICK CMA and one of our agents or our Broker will be in touch with you to complete a personalized property evaluation report for your home with more indepth detail and a more accurate pricing report.