What's My Home Worth?
What’s My Home Worth?
How do you know what your home is really worth in today’s market? Estimating your home’s current market value is the first step in deciding how to accurately price your home, and that entails comparing your home to the most similar homes recently sold in your neighborhood.
Estimating an accurate value can be challenging because market values are fluid, the real estate market is constantly changing and there are many influences on values.
Factors That Directly Influence Market Value
Physical Condition, Inside and Out
Room Count – Bedrooms, Bathrooms, etc
Age of Home
Improvements Completed or Needed
Lot Size, and Location
Proximity to Schools, Shopping, Transportation
Recent Comparable Closed Sales
Current Inventory, Sales Volume, and Absorption Rate
Current Market Trends in Your Area
National and Regional Economic Conditions
Current or Planned Projects Nearby
Flood Zones or Other Insurability Issues
Factors That Do Not Directly Influence Market Value
Previous Purchase Price
Actual Amount Paid for Improvements
Assessed Value for Taxation
Unsold Listings Nearby
Automated Online Values
Estimates of Future Improvements
Type of Purchase Financing
Where do I find accurate market information?
A local real estate professional is the best source for the current, accurate information needed to correctly estimate your home’s current market value. There’s an incredible amount of real estate information available on the internet today, but much of that information may be inaccurate. Many websites display outdated listings and misleading automated home values (AVM’s) which can cost both buyers and sellers a lot of money.
A qualified local real estate professional will have all the necessary information on the most recent similar sales in your neighborhood and can make the necessary adjustments based on the conditions and characteristics of the comparable homes.
What is an AVM?
Automated valuation models (AVM’s), like “zestimates”, are generic computer generated valuations that should only be used as a broad starting point. These values are produces using a computer programs (algorithms) that look at various market factors and recent sales. They are OK as a starting point but they rely on basic info from the county tax assesors database and don’t have the ability to consider factors such as exterior and interior condition, updates, location, etc.
Example – your house may be fully updated, has a pool, and is a waterfront lot while the house across the street is in disrepair inside and out, needs new roof, no pool, and backs up to busy shopping center – as long as both houses are the same age and size, the online valuation of these 2 houses will likely be the same.
What is a CMA?
A full Comparative Market Analysis (CMA) on your home will give you a much more accurate estimate of your homes current market value by analyzing comprehensive local data and the most similar/comparable recent sales in your local market. Beware of anyone or any agent that is using unsold listings (pending sale, backup status, expired) in estimating market values. An accurate analysis will only use SOLD listings, from the last 90 days if possible. Pricing your home accurately is the best way to sell it for the highest price in the shortest time.
What can you expect to see in the CMA that we prepare for you? A completed CMA is presented in the form of a report, which includes the all of the current market data, suggested selling price range, detailed information about your home, and the comparable properties that were researched to determine its value.
An accurate CMA includes the following information:
- Comparable Properties – the most similar homes that have recently sold in your neighborhood
- Adjustments based upon condition, location, and improvements of your home compared to others in your neighborhood
- A detailed report on your Home and the estimate of its value based on today’s local market