When it’s time to sell your home, you will likely wonder how to determine what your house is really worth. In today’s competitive market, determining your house’s value may be difficult, since its worth is ultimately determined by how much people are willing to pay for it.
If you live in any of these neighborhoods in Tampa, Clearwater, or St. Petersburg. How do you find a solid listing price that will attract buyers, without undercutting your home’s value?
- Safety Harbor
- Dunedin
- Clearwater Beach
- Largo
- Fossil Park
- Gateway
- Holiday Park
- North Kenwood
This article will detail 3 steps to determine what your house is really worth so that you can get your money’s worth.
Online Valuation Tools
Online valuation tools can calculate an estimated value of your property by using public records and the information you provide about your home. They’re a simple and convenient way to get an idea of your home’s value. An example of a respected online valuation tool is PennyMac’s value estimator. The estimator will give an overall value, price per square foot, and sales/value history.
Pros and Cons of Online Valuation Tools:
Pros
- Usually free and simple to use
- They provide a quick and easy estimate of the value of your home.
- Many valuation tools regularly update the value of your home.
Cons
- Only provide an estimate, and don’t take into account certain aspects of your home that may turn certain buyers on or off.
- Valuations may vary based on the online tool you use.
- These tools generally don’t factor in necessary renovations or repairs.
Hire a Professional Appraiser
As a seller, you’re not required to get an appraisal of your home, but it may be a good idea, especially if you are serious about getting the most accurate figure possible. The appraiser brings an impartial, expertly researched estimate of a home’s value. They will simply visit the property, analyze the state of your home, and review recently sold or pending sale comps.
For example, if your home is in need of major upgrades to its plumbing system and roof, the appraiser will factor this into the final appraisal amount. Depending on the size and location of your home, you can expect to pay $250-$500 for a professional appraisal of your property, so the estimate doesn’t come at a cheap price tag.
A professional appraisal is likely the most accurate estimate you will get on your home, and it may give you a better idea of the repairs you should make before selling. However, it does cost a good amount of money, and buyers are mandated by banks to get an appraisal before qualifying for a loan, so it may ultimately be unnecessary if you decide to sell your home with a professional real estate agent.
Hire a Real Estate Agent
Working with a real estate agent is one of the most effective ways of determining the worth of your home. Realtors have specialized techniques for estimating a home’s value, allowing you a professional opinion to go on, along with appraisals and online valuation tools. Many realtors will estimate your home’s value using a Comparative Market Analysis (CMA).
A Competitive Market Analysis includes comparable home info, known as comps. A CMA can tell you what comparable homes are selling for, how long they are on the market, and what homes sold for compared to their original listing value. Comparable homes typically share the following characteristics, using data from the Multiple Listing Service (MLS):
- Similar size
- Similar location
- Similar style and view
- Same number of bedrooms and bathrooms
- Home type (i.e. single-family home, condo, townhome, co-op)
- Recent sales price
While a realtor’s estimates are typically pretty accurate, keep in mind that a CMA may not be 100% true to the ideal listing price. You may have to adjust the listing price of your home, depending on the offers you receive, if any. That’s why working with a realtor is beneficial. The real estate professional can guide you through the process, helping you adjust your home’s listing price along the way.
Conclusion
No estimate is perfect, but using an online valuation tool, or hiring a professional appraiser or a realtor can give you a good sense of what your home is really worth.