How much is your home worth?

Your home is worth approximately as much as any other similar home
in its market area. Determining the proper “asking” price is essential
to actually getting it sold.

Every Property is Unique
The problem with comparing homes rests with the "unknowns".
You know what your home is all about, but you often have no idea
what the competition has to offer. 

Logically, a home in good repair should sell for at least "fair market value".  A home having special amenities such as a wonderful view, expensive hand crafted woodwork and cabinetry, or lush landscaping
may sell above market value. Likewise, the value of a home in need of repairs and updates may be adjusted down.

The following are commonly used, and misused, methods of determining real estate values:

The Appraisal Quandary
You may have recently refinanced your home and now possess an Appraisal stating that your home is worth a certain amount of money. However, Appraisals may not offer an accurate measure your home’s "market value".

The Appraiser’s job is to assure the purchaser of the appraisal that your home is worth a certain amount for a given purpose. Appraisals can vary significantly depending on circumstances. Appraisals for refinancing, setting an estate, the cost of insuring a property may all yield different prices. Evolving market conditions and customer appeal are not always factored into an appraisal.


The “State Equalized Value” Myth
In a perfect world you would be able to compare your home’s SEV (State Equalized Value) to other homes in your neighborhood and arrive at a realistic value for your home. Sadly, these numbers are only estimates which have been established for tax purposes. SEV figures are based on recent neighborhood sales and your home is assigned a value without any consideration for your home’s condition or amenities. While interesting to look at, SEV figures can be very misleading.
 

"Value per Square Foot" Dilemma
Price per square foot is not a bad rule of thumb. However, this method of valuation does not account for a home’s location, its overall condition and special features,
how the home's spaces are used, or customer appeal. Two 1800 square foot homes
 in radically different condition can not be fairly evaluated on the basis of square feet.

It's also important to consider how the property was measured and if the square footage includes space below grade or rooms that are oddly shaped or unheated.

 

Comparative Market Analysis  
The best way to learn the current market your home is to request a CMA, or Comparable Market Analysis, from a REALTOR.  A CMA prepared by a knowledgeable, professional REALTOR with good analytical skill is the most accurate way to arrive at the selling price of your home.

A properly researched market analysis will compare your home to recently sold homes and to similar homes that are currently on the market. This report will give you a clearer picture of
what buyer's have been willing to pay for a home like yours and what the competition will be.