If you’re new to the real estate market and you are looking to sell your first home, then you might be a little bit confused as to how to calculate its value. This post will show you how to determine your home value in a few easily digestible tips.
Your personal feelings don’t determine the value of your home; its features do
The way you feel about your home, your mortgage, and your personal experiences do not determine your home value; what the buyers want mostly does. Buyers don’t care about what story your house tells. The economy and location associated with your home determines the value of your home.
So, it’s pertinent to remember that you are selling to people, and you must try to go above and beyond to make sure your home appears inviting to potential buyers.
A shortlist of things to watch out for that will sway buyer decision and ultimately the value of your home
- The location
- The safety
- Its external appearance
- Free and usable space
- Neighborhood and school district
The buyer’s feelings or opinions does not wholly determine the value of your home. Certain economic, temporal, and societal factors could also affect the market value of your home.
High and low Mortgage interest rates: High-interest-rate homes are typically harder to sell than low-interest-rate homes. It’s often a major deciding factor that could make or break your buying decision.
Time of the year: Holidays and the start of the school year are times that most people don’t typically buy homes. The value of homes rises and dips during this period
Supply and demand: High demand or supply will cause the value of your home to rise and fall, respectively.
The price of homes in the neighborhood: The prices of other homes in your current neighborhood determines the value of your home.
Input your information and let an algorithm do the rest
There are several online web services that provide estimates of how much a home in a certain neighborhood is typically valued for. These services work by taking public record information about your home like:
Your home type, year of construction, room numbers, square footage of your lot and home, heating and cooling systems, parking spots, and the prices other owners before you have paid, market trends, taxing information, and even demand.
They combine all this data, run it through their algorithm, and spits out a number they think your home is really worth. It’s a great place to start if you don’t know the first thing about property valuation. They will give you a rough idea of the market direction and tell you whether it’s a great time to sell or wait.
Get help from a professional
Getting an estimate from an online tool is well and goo. However, you have to remember that it’s limited to the information it has access to. A real estate agent can give you a precise estimate of your home based on public records and sales records. They use databases like the MLS for that purpose. They are also well connected and can tell you how minor upgrades, and flaws can affect the value of your home. You should not skip over them, the value they provide will more than cover the fee they charge.