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Estimating The Value Of Your Home Before Selling It

Written by Posted On Sunday, 21 October 2018 23:21

Wondering what the real worth of your home is? The simple answer is: whatever someone pays for it. But why take their word for it when you can access the value all by yourself.

Why is it necessary to estimate the market value of a home?

Estimating the market value before selling your home gives an immense control over insurance premiums, property taxes and refinancing the home.

What is the market value of a home?

Market value is estimating how much a house would sell under normal conditions excluding its sale under pressure like career relocation or divorce. It is basically an educated guess.

Size the competition

You do not have to compare your house with every other house that you come across. Limit the search to properties that are similar to yours.

How to know which properties are comparable?

1. Local area
The locality includes the main roads, schools and transport lines. Look out for the properties that are at the same distance from the local facilities.

2. Inside the house
The interior includes the number of rooms which includes everything starting from the kitchen to the bathroom.

3. Outside the house
Compare the exterior of your house to the ones you find similar. This may include the size of a garage and the number of parking spaces.

4. Size and condition of the property
Look at the total size of your property and check its quality. It matters how they are built and what their current state is. The architectural style of the property, sidewalk, paved road and sewage systems all play a vital role in determining the condition of the home.

Where to find comparable houses?

1. Online research
Internet is the best option when you wish to find comparable houses before selling your house. Use keywords like “comparable real estate homes for sales”.

2. Local newspapers
The papers usually have quarterly sales reports in the business or real estate section.

3. Real estate agents
The expertise and vast sales information of the agents significantly helps to find the real worth of a home.

What to do when the characteristics aren’t identical?

Every homeowner is confused with how to sell my house? It is quite impossible to find an exact comparable sale. For this, you need to adjust the sale prices of the properties. Some analysis on your part is required to see if the differences increase or decrease the sale price of your house and by how much it does. After an adjusted sale price, estimate the price for which the house will sell.

What are some of the other things to consider?

To have some more insight in the market value of a home, these figures will help you out-

  • The number of days the house has been on the market. It starts from the day, the house was first listed to the sale date.
  • The median price of a house is its average worth. This is specific to local areas and this number is the average worth of a house.
  • To know the current demand in a local real estate market, get to know the clearance rates. These rates show the percentage of houses sold during an auction as well as before and after that.

While looking at the market when selling your house, you need to remember to adjust your estimate every now and then because the market keeps changing very fast. The sales price of a house from 3 months ago may not be relevant anymore. That is why visiting auctions is a good idea as it gives an idea of the current market and how hot it is.

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James hoff

I'm a writer; illustrator, columnist and an editorial fellow in Real Estate Company Olde Florida Realty. My previous work includes roles in digital journalism and content writer. I did graduation in Journalism. For my Post graduate thesis, i researched on Communicative Science and Disorder. With my sole insights into how people thinks and motivations, i help client to develop and strengthen their brand. I'm excited to join Thrive in its vision to accelerate the society budge.

https://www.selfgrowth.com/articles/top-five-things-to-do-before-listing-your-property-for-sale

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