What is the Market Value of Your Home?
You may be considering selling your home soon or maybe in a few months or maybe not interested in selling your home at all yet it is still valuable to know what your house is worth. The market has changed considerably since the last decade. We had a huge drop in prices during the crash of 2007 however 2013 the housing prices have been slowly turning upward. Your home is one of the biggest investments you will ever make so it makes sense to keep track on how much your home is worth on the market. The big question is how do you price a home? Many factors come into play when determining market value.
Many websites provide programs estimating home values. Those are good for a general idea of what your house may be worth however those programs typically take current listing prices on various homes regardless of condition and age in a specific area and calculate the value. Owners can do that themselves and narrow the criteria by choosing listings on Trulia, Zillow or Realtors.com, which most match their current home. This is a good way to determine what price neighbors are trying to get for their home. The problem is the word “trying”. What the home sells for is the true market value of a home and unfortunately owners cannot get access to this information.
Realtors are the best source for determining market value. The Multiple Listing Service (MLS) is a powerful tool for calculating price. In order to get the most accurate value the Realtor will create a Comparative Market Analysis (Comp.). From the MLS the Realtor will choose homes that recently sold (Usually in the last 4-6 months.) by matching age, square footage, number of bedrooms, pools, acreage and condition within an area around your home plus subdivisions similar to the one the subject property is located. The Realtor will average the square footage cost then apply the cost per square foot to the subject home. A good Realtor will also show you recent listings so you can understand what competing properties are doing sometimes revealing how far off they are in market value. They will also show you “expired” listings. This gives you an idea of a price, which did not sell the particular home making this a great reality check. Even if you are not selling your home in the near future, a good Realtor will do this for you at no charge. To them it is a way to make new contacts. If you would like a Comparative Market Analysis for your home just drop me an email at: email@example.com and I would be happy to do one for you.
As mentioned above many factors contribute to home prices. Some you can control others you cannot. For instance, you cannot control where your home is located or age and unless you plan for an addition, square footage, acreage, number of bedrooms and pools you cannot control. Condition is the only controllable aspect so it is always a good idea to keep up with the maintenance of your abode. See ya down the road.