What Is Your House Worth?
In this unique sellers’ market, it seems like you can put any crazy number on a house and it will sell. In reality, determining market value is still crucial if you are serious about selling. Overpriced properties take longer to sell and sell for less than if priced correctly from the start. Below are the common approaches for determining value.
1. Automated Valuation – Companies like Zillow calculate value using software based on mathematical modeling. While convenient, it is not accurate. It misses important price influences such as property condition and location (e.g., it can’t see your brand new kitchen or if on a busy street).
2. Appraisal – An in-depth analysis by a licensed appraiser and is typically used in the loan process. Right now bidding wars are driving sales prices up higher than other recent sales. Since appraisals rely heavily on past comparable sales, this lagging data can make it difficult to capture the current market.
3. Market Analysis - Prepared by a realtor to provide a probable listing price. Using similar active and recently sold properties and factoring in the many characteristics that impact value.
Of note, assessed value is for tax purposes and may not reflect fair market value. Also, there is no correlation between the cost of building vs. how much your house is worth. Want to know your home’s value? Contact me - 28 yrs. in the business and still keeping current. Put my knowledge to work for you!