Selling a home can be a tiresome process especially for someone who has never done it before. There are a lot of things that you need to consider to avoid getting ripped off. Everything from the real estate agent you hire to the ads that you post online will determine how successful you’ll become at the end of the selling process.
Before you think of posting your property on the real estate market, you need to ensure that you get the ideal listing price. This might sound like an easy thing to do. However, it’s more complicated than what the majority of people think. This is because a lot of factors affect the value of your house in the market. At times, the smallest things such as a faulty garage door can negatively affect the value of your house.
Therefore, finding out the worth of your home is not a process that you should take lightly. To help you avoid getting stressed and overwhelmed, we’ve compiled a few practical tips that will help you find the price of your house in the local area. Let’s get started!
What affects the value of your home?
As we said earlier, there are a lot of things that affect the market value of your home. Knowing these aspects is essential if you want to get the best price for your house. In this section, we are going to talk about these important aspects.
The first is location. The distance from amenities, schools, roads, and your neighborhood can make a huge difference when determining the worth of your house.
The second is the size of your property. You need to measure the square footage and the usable space available. You shouldn’t be surprised by the fact that buyers are willing to pay more for bigger homes. However, don’t get carried away by this fact.
Another important aspect that determines your home’s value is its current state and age. In most cases, older homes tend to be cheaper than newer homes. Keeping your home in shape by improving it consistently can greatly boost its value. Other important things that can affect the value of your home include:
- The conditions of the real estate market
- The number of bathrooms and bedrooms
- Economic aspects such as interest rates
- Previous sale prices
- Home upgrades
Estimating the value of your home
Now that you are aware of the factors that determine the value of your home, let’s discuss a few important ways how you can estimate the value of your home before listing it.
1. Utilize online tools
Most people today use automated valuation models (AVMs) to discover the value of their homes. According to a recent study, 22 percent of homeowners use websites to find out the worth of their homes. These tools analyze records such as location, property taxes, listing prices, and recent sales to predict the value of your home. The use of an online estimator is one of the best ways to discover the worth of your property. However, you should keep in mind that these online tools don’t provide a 100 percent accurate value to your property. Nevertheless, you’ll get a clue of its value.
2. Hire a professional
Most people hire a professional home appraiser to determine whether they can get and afford to pay the mortgage. However, you can hire one to help you determine the value of your property whenever you want. A recent survey found out that 28 percent of homeowners hire an appraiser to help them find out the value of their property. An appraiser will do much more than help you discover the value of your property. They can:
- Describe the characteristics of your property
- Compare properties
- Help you know more about the real estate market in your area
After looking at all these factors, your appraiser will deliver a report on the value of your home.
3. Perform a comparative market analysis
You can estimate the value of your house by requesting your real estate agent to conduct a comparative market analysis. While this report won’t be as detailed as that of a professional appraiser, it will still be accurate. Real estate agents usually perform this analysis for a few dollars or at times, for free. However, when you ask your realtor to estimate the value of your home, they will treat it as an invitation to work with you throughout this process. Before asking for comparative market analysis, you need to choose an agent that you can work with comfortably.
4. The FHFA House Index Price Calculator
Another great way to get a thorough analysis of your property is by using the Federal Housing Financing Agency house price index. This is a scientific method that provides an accurate value. The house price index uses the repeat sales method which involves analyzing the home’s change in value in previous sales using mortgage transactions data that has been gathered since the early 70s. It uses this information to estimate the value of your property given the current market trends. The disadvantages of this method are:
- It only analyzes conforming home mortgages
- It doesn’t consider inflation or seasonal changes
5. Evaluate similar homes
You can discover the value of your home by comparing other similar homes in your area. It’s the most famous and simplest method in the US since most homeowners use it before selling their property. You need to ensure that you are comparing your home with the right ones. You need to look at homes with a similar location, age, size, condition, and upgrades. Think of other houses that your prospective buyer would choose instead of yours. Compare at least three homes to get an accurate price of your home.
6. Look at expired and withdrawn listings
Look at withdrawn and expired listings to discover the value of your home. Expired listings are all the agreements that ran out without them being bought. On the other hand, withdrawn means that the homeowner doesn’t want to sell the property. Finding out the value of these properties in your neighborhood will help you find out the value of your property.
As you’ve seen, evaluating your property is extremely important. The process can be tiring and time-consuming. However, it’s worth it in the long run. Look at all the available options and try using at least two valuation methods.
Leon Collier is a blogger and academic writer from the UK who has vast experience working with dissertation writing services and professional essay writing services. He loves to take on every challenge thrown at him and has the ability to deliver outstanding work regularly. When he’s not busy writing, he loves reading books and playing tabletop games with his friends. Follow him on Twitter @LeonCollier12.
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