Ever wonder what your house is worth? With the progression of the coronavirus pandemic, many homes are being priced higher than expected due to low housing inventory and high demand. What if you learned your house was worth $50,000 more than you thought it was worth? Would that convince you to sell? The week of September 21st in National Home Valuation week, and it’s a great time to reach out to a local real estate agent to find out what your home is worth in 2020.
Although you may have looked on popular websites to see what the value of your home is, many times that value is off by 10-15%. It’s best to consult with a real estate agent who knows your area and home values vs. relying on a computer algorithm. Bear in mind, you aren’t obligated to sell your home just because you talked to the agent about it’s value. Need help finding an agent? Please let us know.
When determining the price of your home, your agent will take into account homes that have recently sold in your neighborhood, the location, and the condition of your home. The age of your home, square footage, room size, etc. will also be factored into the appraisal. Your agent will look at the price of homes that are currently on the market, and possibly off-market data, to help determine the highest price your home can be listed for.
Neighborhood factors can also contribute to the value of your home. Are the schools in your area ranked high? Are there a lot of amenities in your area and a high walkability score? Local parks and entertainment also draws buyers to your neighborhood and can add to the value. Your real estate agent will take all of this into consideration when determining a competitive price that a buyer will accept in today’s market. Your agent will compile all of this information and present it to you in the form of a CMA (Comparative Market Analysis) so you can see how the value of your house was determined.
When you work with a real estate agent who knows your area and understands what buyers are looking for, you will get the most from the valuation. An experienced, local agent understands which amenities are important to buyers and how to best market to those buyers. They may already have a buyer in mind who is looking for a house like yours. In addition, they can give you an idea of how many days homes are on the market before going under contract. When you hear the number, you may want to start packing.
In addition to the CMA, your agent can provide tips on how you can add more value to your home. Updating the kitchen could increase your property value substantially, as well as a bathroom remodel. Your agent can share advice on when to hold off on improvements that may not increase the value of your home. As an example, a friend of mine recently spoke with a contractor about remodeling her kitchen and 2 bathrooms before selling her home. She was surprised to learn that it would not be worth it financially to update them if she was going to sell within the next couple of years. The contractor said it would be best to sell as is and let the new owners put their personal stamp on those rooms. If you’re thinking about remodeling before selling, ask your real estate agent for a referral to an experienced contractor to ensure you're making a good investment when upgrading your home.
If you're curious about the value of your home, consider taking advantage of National Home Valuation Week and get a free CMA from your local real estate agent. Learn how your home compares to others that have sold in your neighborhood and whether or not a remodel would increase the value of your home. You might even be surprised to learn that there are buyers waiting for a house like yours to go on the market. Ask your agent for a home valuation today. I think you’ll be glad you did!