How Much is My Home Worth?

It is common question that real estate professional get; what is my home worth? Unfortunately, it is a question that does not have an exact answer. There are ways to determine about what your home is worth. You may find online estimates that say one thing but is that a true test of what the market will bear? So, how can you really determine what your property is worth?

1. Consider Solds-Look at other comparable homes in your area that have recently sold. This will give you a good idea what buyers are willing to pay.

2. Consider Under Agreements/Pendings-Although it is difficult to tell what a home has sold for before it closes you may be able to tell the demand in a price range. Look at the asking price of the home and how long it was on the market. If you see a trend of homes going under agreement quickly you may assume they are going closer to the asking price.

3. Consider Active Listings-Real estate is about competition just like any other commodity. It is important that your home be competitively positioned against other comparable listings. The asking price is a part of the marketing plan of the home.

4. Online Values-Be wary of online estimates. The very definition “online” takes the human factor out of determining the value.  A computer program cannot take into account the nuances of location, home style and home condition.

5. Sell It-The only way to know a home’s true market value is to sell it. At the end of the day a home is only worth what a buyer is willing to pay.

 

Seller or Buyer Market?

If you listen to the media you will never know which way is up when it comes to the state of the real estate market. It’s not just the market that determines how a house will sell but also location, price, and condition of the home.

Like they say real estate is local. Just like you wouldn’t expect the weather to be the same in one place vs. another – the same is true about the real estate market. There are a few things you can look at to determine the type of market in your area.

1. Contact a real estate professional.

2. If you are a seller ask for a comparable market analysis on your home.

3. If you are a buyer determine the average number of days on the market in your desired area and price range.

4. Ask your agent what the absorption rate is the market your are looking to buy or sell. Absorption rate is the rate at which homes are selling.

Whether you are buying a home or selling it’s important to understand the market conditions.