What’s my home worth?
The obvious answer is you will know when a buyer and you (seller) agree upon a price!
The SOLD price becomes the new home market value.
However, in the meantime, we can determine a reasonably accurate value for your home by comparing similar homes that recently sold, all located in your neighborhood.
So what factors do real estate agents and appraisers consider?
- How big is your home? Living space size? per the owner? per appraisal? per the assessor? Official sizes can vary.
- Is the living space legal and permitted? Are there unpermitted additions or remodeling?
- Are you using price per square foot? If so, it dramatically DECREASES as the living space INCREASES, therefore it is essential to compare similar size homes.
- Are there detached sheds, shops, or barns on the property? Appraisers often do NOT consider these structures in their home valuation.
- Are there nice special or unusual features such as wine cellars, solar panels, in-ground pools, or ponds?
- Are there less-desirable features such as power poles, messy neighbors, or a freeway nearby?
- Does the floor plan make sense? Is the living space functional? Are ceiling heights too low or too high?
- Is it a 1 or 2-story home? In general, 1-story homes are more desirable and usually have a higher value.
- How big is the garage? More garage space is desirable and valuable in our area.
- Does your home have an attached common wall with another home? Is there multi-family housing nearby?
- How old is your home? The age of the home may indicate floor plan desirability, insulation efficiency, window style/efficiency, electrical capacity, HVAC functionality, plumbing condition/functionality, and much more.
- Are there upgrades? Are the upgrades attractive and contemporary, or are the upgrades now dated?
- Present home condition? Is it pristine? maintained? clean? uncluttered? free of hazards?
- Is the landscaping attractive? Is the yard functional? Is the yard safe for children? Is there a large lawn to mow? Is there storage for boats, trailers, and more?
- Lot size? In many cases this has limited value, other than providing buffer space between neighbors, unless the land protects the view, or is zoned for agricultural or commercial use. Some buyers like big lots for storage and privacy, and other buyers like small lots for minimal maintenance.
- Is the lot level, sloped, or on a steep grade? How many steps? Is the driveway easy to use?
- How about neighborhood quality, desirability, and proximity to schools, shopping, parks, freeways, and more?
- What school district? Elementary? Middle school? High school? A good school district may increase your home value.
- Specific home location? country? cul-de-sac? flag lot? corner lot? busy street? across from a school or park?
- Specific home orientation? views? prevailing winds? sunshine and passive solar gain?
- Great city and/or mountain views? from the front yard? from the backyard?
- Is there a Home Owner Association? fees? amenities? gated? reputation? In general, HOA’s help to maintain home values.
- What are the market conditions now? And when considering a comparable SOLD home, what was the market condition at that time? Was it a seller’s market? buyer’s market? low or high mortgage interest rates? national economic conditions?
- When considering a comparable sold home, what was the seller and/or buyer motivation? needed to sell or buy? estate sale? relocation sale? foreclosure? short sale? was it sold within a family at a discount?
- When considering a comparable sold home, the sold price may NOT be the actual home value! Was there a seller-to-buyer credit included in the sold price? Was personal property included in the sale, such as a hot tub, refrigerator, pool table, or security system? Personal items included in the home sale price effectively reduce the actual home market value. Appraisers always subtract the value of these items from the sold price.
- And more! LOTS more! Countless factors influence your home value.