When you choose to sell your home, you may think your home is worth much more than what you paid for it. However, a property’s true value is how much a buyer would be willing to pay in today’s market. Housing market conditions, real estate market trends, recent sales in your area, and time of the year are some factors that impact your home value.
If you haven’t had your home appraised in a while, it’s important to learn how much your house is worth before listing it. Believe it or not, you can figure out the approximate value of your home if you use the right tools.
1. Perform a Comparative Market Analysis
Performing a Comparative Market Analysis (CMA) is one of the best ways to learn the value of your home. This analysis is a side-by-side comparison of expired, recent, and listed homes in your area. A CMA can provide an idea of how your home stands against other listings when it comes to price and features in current market conditions.
While you may perform a CMA on your own by using online valuation tools such as websites like Zillow and Trulia, you should consider asking a real estate agent to do it for you. A CMA done by an expert can provide accurate information regarding how much your home is worth.
When you choose to work with a Clever Partner Agent, your realtor will provide a CMA of your home for free. As if that wasn’t enough, our Partner Agents are top performers in their markets who can help you price your home competitively at the time of selling it.
2. Estimate Your Home Value Using the FHFA House Price Index Calculator
If you want a simpler way to learn your home’s value, you should consider estimating it by using the Federal Housing Financing Agency house price index calculator. This FHFA tool uses information from mortgage transactions to track the value of a home.
The change in value from one mortgage to the next helps the FHFA estimate how much the home has appreciated in its housing market. While the FHFA calculator may not be as accurate as a CMA, it can give you an idea of how much your home has appreciated in value from the time of purchase.
3. Obtain a Professional Appraisal of Your Home
While obtaining a professional appraisal of your home may cost you more than other options on our list, it can help you learn the fair market value (FMV) of your home. FMV is the fair price of your house according to the current market conditions.
A licensed appraiser values your property based on the market conditions, home features, size of the property, neighborhood, among other relevant factors. Typically, home appraisals cost between $250 and $450.
A professional home appraisal may come with a hefty price tag but it will put your mind at ease. Keep in mind that lenders will appraise your home before closing on the house so it’s important to make sure you price your home right. If an appraiser values your home under the agreed sale price, the buyer may counteroffer or your deal may fall through.
Obtaining an appraisal will help you price your home with confidence while helping you get the most money for your home.
Learning the value of your house is the first step to successful home selling. While you can do it on your own, you should consider working with a local real estate agent such as one of our Clever Partner Agents.
A Partner Agent can provide insight into your market conditions and how these factors impact the value of your home. Our realtors are top performing seller’s agents in your market who have agreed to charge a discounted commission rate. When you choose to work with a Clever Partner Agent, you’ll get the best guidance to pricing, selling your home, and obtaining the most money for your property.