How much is a home worth?
That depends on a multitude of factors, such as its location, size, amenities, and popularity. There are so many variables, leading to very different prices across the country.
While the average home price in West Virginia is $166,488, in California, it’s $549,900!
Whether you want to buy or sell real estate, you first need to understand how much it’s worth. To find out more, keep reading to find a few of the best ways to determine real estate value, helping you decide whether a property is worth buying—or selling.
Compare Similar Properties:
If you’re thinking of purchasing real estate, one of the easiest ways to work out its value is the comparison method. It’s the simplest method, even if it’s not always completely accurate–the real estate market is a complex beast!
Search in your area for properties for sale that are similar to the one you’re considering. Just because it’s on the same street isn’t enough though—you really want to be comparing features.
Look for homes with similar square footage, number of rooms, and amenities. For example, a home with a backyard pool is always going to attract a higher price, or a home with a brand-new kitchen or finished basement.
Seeing how much these properties are listed for, plus looking at how long they’ve been on the market, can help you work out the value of your property. The length of time on the market is important because it lets you see how in-demand a home is.
For example, if a home is offered at a high price point, but has been on the market for months, then this is an indicator that the pricing is too high.
Hire an Appraiser:
There are professional appraisers who will visit your property and work out its value. They are often used by mortgage lenders, to ensure a property is valued correctly before giving out a loan, but you can also hire them to work out the value of your own property.
Although hiring an appraiser is an additional expense, they know the local real estate market inside and out, so you’re sure to get an honest and accurate assessment.
They’ll use factors such as the home’s age, features, land, and similar properties in the area to come up with a valuation for you. All of this will be included in a detailed report that they create for you, outline the factors that determine the home’s value.
It’s a good idea to hire an appraiser before making an offer on a property, as you want to be sure you aren’t offering more than it’s worth.
Ask an Agent for a Comparative Market Analysis:
If you’re thinking of selling your home, a local real estate agent should be able to provide a competitive market analysis, also known as a CMA. This generally doesn’t contain as much detail as you’d get from an appraiser, but is still fairly accurate.
Agents often offer this as a free service, with the aim of convincing you to list your home for sale with their agency.
Local agencies in each city, such as URB Chicago, put a lot of effort into pricing their properties for sale accurately, ensuring sellers are getting the best possible return, but also helping buyers pay a fair market price.
Try Online Valuation Tools:
If you’re looking for a quick and instant way to determine a home’s value, there are plenty of free valuation tools that you can use. You’ll find them on many real estate websites.
Simply enter the address of a home into the search bar and it will work out an appropriate valuation range, based on website data from previous home sales.
This will give you a good starting point if you’re thinking of buying or selling, but keep in mind that this method isn’t very detailed and therefore isn’t always completely accurate. Often, online valuation tools are designed to gather information from potential sellers to generate leads for the website.
Check Out Recent Sales Records:
If you haven’t already, look for sales records for the last year or two. Most estate websites let you search for properties that have already sold—while some sales prices are withheld by the buyer, most are public,
This lets you look for trends over time, seeing how much local homes are selling for. You can also check when they sold, which might be helpful to see if the market is hotter at certain times of the year.
Often, spring and summer are the busiest times of year for real estate, so you might want to sell at that time to maximize your profits.
Determine Real Estate Value With These Tips:
It’s not always easy to work out real estate value, as there are so many factors at play. However, the guide above should give you plenty of starting points.
Whether you’re thinking of buying or selling, it helps to work with a local real estate agent who knows the market well. They’ll help you make the most out of your sale or help you find the ideal property for your needs.
Get started today by finding a local agent or appraiser who can help you out, ensuring you make smart investments.
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