Calculating The Value of Your Home

How much is your home worth?

For a homeowner this can be a tricky question. Homeowners typically have a strong emotional connection to their home which creates an assumption that the home is worth more than any other home in its category. It is important to understand how much a home is worth so the selling price can be accurately set. A home that is priced too high will sit on the market and people will move on to the next home. Recovering from a high priced home is difficult because potential buyers will forget about the home and a home that sits on the market too long makes other believe something is wrong with the actual property.  

How does one price a home accurately? Here are some things to consider when approximating the value of your home. Your Real Estate Agent should be doing similar market research. However to ensure you and the agent are on the same page do your own research. 


Home Comparison

Take a look at the other homes similar to your home around the neighborhood that have sold. Start by comparing square footage, bedrooms, kitchen, bathrooms and garage.


School Districts

This is especially important to individuals that have children. Home buyers will pay more for a home that is located in a better school district. 


Home Updates

Take a look at the home updates. A home with a full remodeled kitchen and bathrooms will be worth more than one that is dated and needs some remodeling. Now, in some cases this can get tricky so remember to be reasonable. Pricing the home to sell is important so keep in mind that a home that has a viking cooktop compared to a home that has a less expensive cooktop will not change the price of the home. However, a home that has a fully updated kitchen with brand new cabinets, appliances and countertops will increase the value of a home. 


Landscaping

First impressions are important and  curb appeal has a huge impact on buyers.  A home and a yard that is well maintained will certainly appeal to a buyer. The majority of home buyers want a home that is move in ready. A home that looks clean and well put together will enhance that impression. 


Location

Homes located on quiet street vs a busy corner are going to be worth more. Guest parking is always a value add. The more parking available, the more convenient it will be to the potential buyer.  Also, this may sound odd, but take a look at your neighborhood. Do your neighbors homes look presentable and do they keep up with their yards? Let's be honest the majority of home buyers want to buy a home that is next to other homes that look clean and well maintained. Buyers will purchase a home next to a junkyard, but they wont pay top dollar. Also, consider the proximity to amenities: grocery stores, schools and restaurants. The closer you are to amenities the more convenient.


Lastly

Be open and reasonable when determining the value of your home. This will be difficult, for many, especially if this has been your home for a long period of time. If you want to sell your home within a reasonable time frame consider all of these categories. Don't let your self esteem get to you.

TIP: It's tempting to list your home with the a realtor who tells you it can sell at the highest price. The smarter way to sell your home is to price it as accurately as possible from the beginning. Studies show that an overpriced home that lingers on the market will end up selling for less than the estimated correct price.