Have you ever wondered what the value of your home is? You have probably heard or seen this question a hundred times. I get asked all the time now, how exactly do they figure out the value of your home? If you have ever pondered this question yourself then read on as I explain in detail how a Realtor places a value on your home.
First, let me start by telling you how not to try and establish a value of your home. Unfortunately it is not based on what you want or even what you need. Many investment home buyers can tell you this. Nor is it based off what your neighbors or other real estate sales representatives tell you. By others I am referring to sales representatives working to buy or sell other homes in your area without any duty to represent your interests. They may be telling you their opinion which may be weighed to benefit who they are representing. And neighbors, well they are just looking out for themselves. The value of your home is not found in the cost of replacing it. A true market value is what people are willing to pay for it, not the cost of building it.
So how do you determine the value of your home? First you start by looking at what sold in the area that is comparable to yours. These comparables should be the same style (Bungalow, backsplit, 2 story, etc), same lot size, same number of bed and bathrooms. Try to find the identical home as yours. Sometimes this is easier than it sounds, but do the best you can. Start your search going as far back as 60 days. If that does not turn up 3 or more comparables, extend your search to 90 days. If need be you can go back as far as 180 days but any further back than that can really be misleading.
Now that you have your three comparables, compare them! If they are really comparable then the prices should be fairly close to each other. If one stands out – either higher or lower than the rest – read the specifications and remarks and try to see if there is anything different about it. Is it on a court without heavy traffic? Does it back onto green space or a waterway? For a property to sell for a differing price there must be a reason someone was willing to pay more or less for it. Look at the pictures as well. A really nicely “staged” home will tend to sell for more. After looking at these comparables you should see a price range and why each sold for what it did within that range. Now, how does your house fit into this comparison? Is yours as modern as the highest selling comparable? Is your house and property larger than the lowest selling comparable? It may be hard for you, being emotionally attached to your home, to be truly objective and not biased on this comparison.
It is for this reason, to have an unbiased view, that you should get a professional to look, evaluate, and give you a true value of your home. Not only will they be less bias, they will have access to much more in-depth information than you would.
If you would like to find out what the value of your home is worth, please contact complete this form. It is free, comes with no obligation, and should take less than an hour of your time not including an initial tour of your property and any questions that you may have.