Deciding to sell your home is one of the toughest decisions you make as a homeowner. Is it time to move on?
Maybe you and your spouse are empty nesters who are considering the possibility of selling your home. No matter the stage in life you are in, you must figure out if selling your home is worth it.
It all starts with learning how much you’ll make from selling your home. After all, you don’t want to sell your home below market value.
You may think your mortgage amount, buying price, or opinion are indicators of your home market value. Yet, that’s far from the truth. It’s the price that buyers are willing to pay for your property in your market.
Don’t know how to get an accurate picture of your home value? Here are five ways you should consider to find out your potential homeselling profits.
1. Use Online Home Value Estimators
Believe it or not, your journey to getting an accurate picture of your home market value begins online. You might have heard of sites such as Zillow, Redfin, Realtor.com, among others. These websites use public records such as deeds and property taxes to provide estimated home values.
Also, you may find market reports that tell you the big picture of your market. These home estimation tools may even compare your property to other similar listed and sold homes in your market. It’s recommended to survey these websites before consulting an expert to obtain an overview of what you can expect.
2. Get an Estimated Value Using the FHFA House Price Index Calculator
If you are looking for a rough estimate, you may consider using the Federal Housing Financing Agency’s calculator. This tool uses the data gathered by the agency from mortgage transactions in the United States. The agency tracks price changes between transactions to offer an estimated home value.
While the mortgage information may be current, the estimated home market value from this tool isn’t adjusted. Keep in mind that factors such as inflation and time of the year may cause your home value to fluctuate.
3. Request a Comparative Market Analysis
While online home value estimators are a starting point, requesting a comparative market analysis is a must to obtain an accurate picture of your property value. A CMA offers a comparison of your property against other similar houses in your market.
This report will analyze current, expired and sold listings in your area. While you may think using your property tax appraisal as a price point is the best approach. A CMA offers accurate and current home market value information.
You may conduct a CMA yourself. Yet, you should consider asking an expert such as one of our Clever Partner Agents to do it for you. Using a CMA as your guide to price your property can give you an accurate idea of how much you can make by selling your home in the current market.
4. Hire a Professional Appraiser
A market analysis can provide the details when it comes to the numbers. Yet, you may consider hiring a professional appraiser to estimate your home market value. After all, lenders will send an appraiser to value your home to approve the buyer’s mortgage.
In contrast with other types of valuation, an appraiser bases their estimated value on location, property condition, depreciation, other similar homes in your market, among other factors. Also, your appraisal estimated home market value may come in handy if you’re trying to decide between selling or refinancing your home.
5. Compare Your Property to Other Similar Houses in Your Market
You may think that hiring a professional appraiser is too much expense when you’re figuring out if selling your home is the right call. Instead, you may consider comparing your home to other similar properties in your neighborhood.
It’s recommended to compare your home to a minimum of three similar houses in your area. Remember to narrow your comps based on location, condition, and similar footage.
While websites such as Zillow or Trulia may offer pricing and details about current listings, it’s recommended to browse local MLS listings. Try your best to make a realistic comparison to recent sales or current listings in your neighborhood.
If you want to learn the exact range or amount of your potential homeselling profits, you may consider requesting a CMA from one of our Clever Partner Agents. These real estate agents will offer a competitive market analysis without signing any commitment.
Our Partner Agents are top performers in their market and understand that you don’t want to list your house without knowing if it’s worth it. Discussing a competitive market analysis with an expert can provide an accurate picture of your potential homeselling profits.