In an ever-changing market, keeping up to date with the value of your home is crucial if you plan on selling soon. There are many ways to evaluate the worth of a home and figure out how much you should list and sell it for. If you are just getting started with the selling process, check out these tips to help determine the real selling price of your home.
Explore Some Online Evaluation Tools
The beauty of the modern age is that we can do so many things online now that we were never able to do before. If you want to start evaluating the value of your property without leaving the comfort of your couch, a great place to start is to search for some online evaluation tools.
One of the most popular tools to use right now is called an AVM or automated valuation model. In short, an automated valuation model is a pre-created computer program that has been fed information about the current housing market. The AVM runs data like the age of the home, statistics about the area, and previous sale prices if applicable to determine what the house may be worth in the current market.
Some of these online tools allow you to plug in specific information or simply ask you to punch in the address of your house in order to make an evaluation. Different automated valuation models generate prices based on varying information, so it is good to play around with multiple programs to see the disparities between each one.
Get Your Home Appraised By A Professional
One of the best ways to get an accurate estimate of the selling price of your home is to get it appraised by a professional. This is also a common practice when selling a house and most home loaners require an appraisal of a home before offering a mortgage loan. An appraisal is basically a thorough valuation of a property in which the appraiser determines the monetary value of the property. In order to do this, a professional will come to the house and do a walk-around of the property both inside and out.
This process may take a few hours or a few days depending on how thorough the appraiser is. Some appraisers may take several hours to walk around and take note of all of the features of a house and they will usually have a checklist to tick off. This is a good time to alert them of any recent updates or features of the home that you believe add value. After doing the walk-through, they will look at all of the information and use their expertise to determine how much the selling price of your home should be.
Take Note of All Updates You Have Made
Different tweaks and improvements that you have made to your house since you have lived in it make a big difference in the value of your home. If you bought your home brand new, then you have probably added things like new appliances and landscaping that have increased the value of the property. Likewise, if you built a custom home, you have hopefully included features that are appealing to the common homebuyer and that will contribute to its resale value.
If you currently own a home where you were not the original owner, it is likely that you have improved the house so that it fits your needs and will appeal to future buyers. If you are thinking of adding some updates before selling your home, there are many to consider. Some common updates that are appealing to prospective buyers are solar panels, a renovated kitchen, a space for a home office, and an open floor plan. Solar panels are continuing to increase in popularity because they reduce energy costs and are better for the environment, making them a great addition to any house.
Updating kitchens and converting spare bedrooms into offices also make homes appealing to buyers as they show a home that is adapted to the modern family. These updates may also include knocking down a few walls creating a better flow throughout the home and creating an open floor plan. If your home has had any of these updates, then they may be significant factors in adding value to the price of your home.
Research Similar Properties
If you want to get a general idea of how much your house might be worth, you can also use real estate websites to search for other properties that have similar features and characteristics. Look up houses that were built the same year as yours or that are around the same size and in the same area. This will allow you to get a feel for how much your house could go for if you do choose to sell it soon.
If you really want to dive deep, you can also tour houses similar to yours when they have open houses and see what they look like on the inside and outside. This will give you an idea of what new homebuyers are looking for as well as how much value people are putting into certain features or add-ons.
Pay Attention To The Rates In Your Neighborhood
A major factor in the value of a home is the location. If you have lived in your house for many years, you probably have a good idea of the character of your neighborhood and if it has a welcoming vibe. As you are searching for houses similar to yours, also check out the general price range of homes in your neighborhood. It is also good to check if many houses are selling or if they are sitting with a for sale sign for long periods of time. Whether houses in your neighborhood are selling or not may affect the selling price of your own house.
Whether it’s in six months or six years, it’s always good to know how much your home is worth if you plan to sell it. Keep these tips on hand when you start thinking about selling your house and always remember that you can always continue to improve your property in order to increase its value.
