Putting your home on the market can be a bit of a gamble because it’s hard to know how much it is worth now compared to when you bought it. Whether you need a bigger house to accommodate your growing family or you are looking to move closer to your work, you will want to try to sell your home for the highest price possible. Depending on the climate of the real estate market, you may or may not be able to get exactly the price that you are looking for. With that being said, it is imperative to understand how your home is valued and what to make of different valuation estimates from either real estate agents or online tools. Home valuation estimates are just estimates; it depends on the market and what the right buyer is willing to pay for it. But putting the right listing price on your home can make a huge difference in terms the length of time it takes to sell and the final amount you receive for it when all the papers are signed.
Property Search Tools
There are a few different ways that you can go about finding out how much your home is worth. Several websites offer tools for homeowners to plug in their address and other information and gives back an estimate for the value of their home. These tools utilize public data based on home sales of comparable houses that are similar to the one you are seeking a valuation for. If your home is unique or an outlier of the homes near you that have sold, the estimation will probably be less accurate. The more homes that have sold recently that are comparable to what is going to be listed, the more accurate the estimation will be. Real estate agents will do something similar when putting together a home valuation estimate for their clients. Performing a competitive market analysis gives the sellers a good indication of what they should be listing their home for. The more data that is available in terms of similar homes that have sold, the better the estimate will be.
The Science of Online Home Valuation
Whether it is the online home valuation tools or a real estate agent’s market analysis, there will always be a small margin of error because home valuation is not an exact science. As stated earlier, it ultimately comes down to how much the potential buyer values the home and what they are willing to pay. The home valuation estimates should be used as a starting point for the listing instead of the final number.
There are several factors that come into play when determining the value of your home. Some of the factors are out of your control, while there are some small things that you can do to help your home sell.
How your home looks in comparison to the rest of the homes in the area can go a long way to appealing to potential buyers. Your home will appeal to more buyers if you update the paint job, provide a clean, easy to maintain yard and even a fresh mailbox. All these things take a little bit of time and effort but can make a huge difference. Would you want to buy a house that has a faded paint job or a run down yard? You most likely would not because those things translate into work, so take the time to make your house as presentable as possible. A little money spent sprucing up the curb appeal can really help when the offers come in.
This is the most important factor besides your actual house. Location is very important for determining the value of your home because buyers will be looking for proximity to various amenities (grocery stores, gas stations, restaurants, etc.), quality of nearby schools for their kids, how safe the neighborhood is, the actual land itself, views, the future development of the area (if it is in the outskirts of the city) and anything else that is related to the location.
The Value of the House
The house itself is the most important aspect of the valuation, for obvious reasons. Here are several factors that help determine the value of your home:
- Age– Buyers tend to look for historic charm or brand new, in-between aged homes can be a challenge.
- Renovations– New renovations and additions can help bring an older home up to date like kitchens and bathrooms.
- History– Floods, fire, storm damage and anything else that may have caused damage and documented can raise some concerns.
- Size– Is your home the Joneses of the neighborhood or is it significantly smaller than the rest of the homes? Size compared to the area makes a big difference especially when looking at average price per square foot.
- Bedroom/Bathroom numbers– Along the lines of the size of your home, the number of bedrooms and bathrooms can make or break a buyer’s decision.
When you finally decide that you are ready to list your house on the market, make sure that you are working with an experienced real estate agent who knows the local market. Jeff Barchi has served the Phoenix Valley homebuyers for 17 years and knows exactly what it takes to help you sell your home. To get an estimate of what your home is worth, contact Jeff Barchi real estate agent in Phoenix today!