Last Updated on September 12, 2023
5 Steps To Determine The Value Of Your House
Post by RyanSellers.com Real Estate Group
While there is no magic formula for figuring out the exact dollar value of your home, you can get pretty close by analyzing 5 pivotal factors that determine the value of a house and one thing to avoid.
1. Price of Comparable Houses In Your Area
Also referred to as comparable sales (“comps”) by real estate advisors, researching the comparable prices of homes in your area/community offers a strong starting point for appraising your home’s value.
Secondary to the prices of comparable houses in your area, the proximity to schools, parks, shopping, accessibility to public transportation, what your house backs up to, the prestige of the community and even the direction your house faces can all play an integral role in determining the value of your house.
3. Bed/Bath, Size & Layout
The square footage, number of beds and baths, and the layout of your house also affect its value. In general, the larger the house – the higher the value. But a large house with a well-designed layout that utilizes every square footage of space will command increased value.
4. Condition & Upgrades
When appraising your house, it is crucial to be critical when analyzing the condition of it. Was proper maintenance performed on the house regularly? Did you recently add new hardwood floors? Are your kitchen appliances energy efficient with all the latest bells and whistles? These are just a few questions that you may ask yourself when determining the value of your house.
5. Market Conditions
Market conditions are always changing. Is there a high demand but a low inventory of houses in the market? Is there a low demand but excess inventory? Are the mortgage interest rates high or low? In general, a strong economy can drive up the value of your house so being strategic when you sell is important.
Bonus: Personal Bias
Personal bias is one of the most significant factors in how accurately you value your home. When appraising your house, it’s essential to be objective, not subjective. While a particular aspect of your house may intrinsically hold immense value to you, others will probably not feel the same.