HOW MUCH IS MY HOUSE ACTUALLY WORTH?
It's usually one of the first questions a homeowner asks when they're thinking about selling:
“How much could I get for my house?”
And naturally, one of the first things many people do is pull out their phone and check an online home-value estimate.
That's a good place to start.
But there's a difference between an online estimate and understanding what buyers may actually be willing to pay for your home.
WHAT DETERMINES YOUR HOME'S VALUE?
Your home's value isn't based on one thing.
Several factors can influence what buyers may be willing to pay, including:
* Location
* Recent comparable sales
* Size and layout
* Overall condition
* Updates and renovations
* Lot and property features
* Current competition
* Buyer demand
* Current market conditions
Even two similar homes in the same neighborhood can sell for different amounts.
WHAT ABOUT ONLINE HOME ESTIMATES?
Online valuation tools can be useful for getting a general idea of value.
But they're typically working from data.
They haven't walked through your house.
They don't necessarily know that you remodeled the kitchen, replaced the roof, finished the basement or haven't updated anything since 1997.
They also can't experience how your home compares with the other properties buyers are touring right now.
That's why I wouldn't make a major financial decision based solely on an automated estimate.
WHAT IS A COMPARATIVE MARKET ANALYSIS?
When I'm helping determine a potential listing price, one of the tools I can use is a Comparative Market Analysis, commonly called a CMA.
Instead of simply looking at an estimated value, we examine relevant properties that have recently sold, properties currently competing for buyers and other factors affecting your specific home.
We're trying to answer a more useful question:
What is the market telling us about this property right now?
THE HIGHEST PRICE ISN'T ALWAYS THE BEST LISTING PRICE
Every seller wants to get as much as possible for their home.
I understand that.
But simply choosing the biggest number doesn't make the property worth that amount.
Overpricing can cause buyers to overlook the home, especially when they're comparing it against other properties in the same price range.
The goal isn't to put the highest possible number on the listing.
The goal is to position the home to attract buyers while protecting as much of your equity as possible.
SHOULD I MAKE IMPROVEMENTS FIRST?
Maybe.
But before you start replacing floors, remodeling bathrooms or spending thousands on the kitchen, let's look at the house.
Some improvements may help.
Others may cost more than they're likely to return when you sell.
There are also situations where cleaning, decluttering, fresh paint and a few relatively inexpensive repairs can make a noticeable difference.
Don't spend $30,000 trying to increase your home's value before finding out whether you actually need to.
YOUR NEIGHBOR'S SALE DOESN'T AUTOMATICALLY DETERMINE YOUR VALUE
Maybe the house down the street sold for $400,000.
That's useful information.
But we still need to know:
How large was it?
What condition was it in?
Was the basement finished?
How many bedrooms and bathrooms?
What improvements did it have?
How large was the lot?
When did it sell?
A comparable sale is useful because it's comparable — not simply because it's nearby.
YOUR EQUITY MATTERS TOO
Knowing the potential market value is only part of the picture.
If you're considering selling, you'll probably also want to understand approximately how much equity you have and what your potential proceeds could look like after applicable selling expenses and paying off your mortgage or other liens.
That's especially important if you're planning to use proceeds from this home toward your next purchase.
THINKING ABOUT SELLING?
You don't need to clean the entire house, repaint everything and have a For Sale sign sitting in the garage before contacting me.
We can start earlier than that.
If you own a home in the St. Louis or St. Charles area and you're wondering what it may be worth, let's look at the property, recent market activity and your goals.
Even if you're not ready to sell tomorrow, knowing where you stand can help you plan your next move.
Micadez Favors, REALTOR® | MRP
EXIT Elite Realty
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