If you are planning to sell your home, you may want to ask an agent how much it will sell for. Before you do, there are a few things you can try to estimate the value of your home on your own. This way, you'll have a good idea of what the market will offer your home before hiring an agent to help with negotiations. Here are four steps to estimating the value of your home:
Perform Local Comparisons
Even if you live in a small community, there are likely dozens of homes just like yours. Look at what similar homes have sold for and listed over the past few months. This should give you an idea of what your home is worth in today’s market.
Compare Your Home Improvements
Knowing how much your home is worth is key to getting a fair price when you decide to sell. Before you put your house on the market, it’s a good idea to make a list of any renovations or improvements you've made, regardless of whether they were expensive or not. If buyers are looking at similar houses in your area that have been renovated, those improvements can increase your home's value. Additionally, keep records for things like appliances and floors. These upgrades aren't as visible as rooms remodeled from top to bottom but can still be part of what sets one house apart from another.
Look at Recent Sales History
The sales history of your home is an important metric, especially if you plan to sell your home as-is. Most real estate agents would advise you to choose a price range that allows for 7-15% annual appreciation, since most neighborhoods trend in that direction over time. To figure out what is possible, start by looking at the sales history of homes that are comparable to yours. You can search online with sites like Redfin or Trulia and find that data.
Perform a DIY Appraisal
The DIY route is a good way to appraise your home before an agent comes to do it. If you’re going with this approach, understand that the number won’t always be accurate but you’ll be able to get a better idea of how an agent will price your home. Go through your home and take note of the condition, amenities, number of rooms, and bathrooms, as well as any problems. Input this information on instant home valuation sites to get a general idea of how much your home is worth.
Selling your home can be stressful, but it’s important to understand the process so you know what to expect and when. These five methods will help you estimate your home’s value and determine the best strategy for selling it quickly and for maximum profit.
