Your home value is an important piece of information when selling your home. Here, we walk you through how to find your home value and ways it can be used. We’ll answer all your toughest questions and give you valuable insights into the question “how much is my house worth?”
What is Home Value?
If you are thinking about buying or selling a house, chances are you have heard the term “home value”. While it sounds straightforward, it’s actually a sophisticated measurement with several moving parts. Simply put, home value is the amount your home is worth, depending on a variety of factors. Location, size and layout, condition and age, features and upgrades, and comparable sales all influence how much your house is worth. On a larger scale, local market conditions and trends are also factors, which fluctuate over time. Your home value, then, is not static but constantly changing. Knowing your home value will be a key piece of information when you are pricing your home to sell.
What Are Appraised Value, Home Value Estimators and Market Value?
There are several types of home values, each calculated in a different way. Appraised value is a home value assigned to you by a professional home appraiser. Home value estimators value your home based on private and public data, so the estimate is only as good as the information available. Market value is the actual value of your property when it is placed on the market.
Depending on which type of valuation you use, your final number can vary with each. For instance, market value can vary greatly depending on larger forces at play such as market conditions and the economy. Home value estimators will fluctuate depending on the accuracy of the information the algorithm has. Appraised values are assigned at a specific point in time so multiple appraisals over time may yield different results.
How Do I Determine My Home Value?
There are several ways to determine your home value.
The first way is to analyze local real estate market trends to get a rough estimate of your home’s value. Do your research into comparable homes in the area and understand how the market will influence your home value. Remember that this is an important piece of information used to price your home.
You can also utilize online valuation tools such as Zillow to get a free home value for your property. The site uses public and private data to determine what your home is worth. However, these sites are not as accurate as working with an appraiser or a realtor.
Working with an appraiser is one of the best and most reliable methods of getting your home value. They will provide you with a detailed and accurate estimate of your home’s worth. However, an appraisal can cost several hundred dollars.
A realtor’s services are always going to be the best way to find the most accurate home value possible. A realtor can give you an up-to-date and true home value based on local trends, the bigger market and your home’s unique features. Using a realtor to calculate your home value gives you the best chance to get a competitive yet profitable price.
What Should I Know About Local Market Conditions?
Local market conditions are based largely on supply and demand. Knowing what type of market your area is in allows you to examine supply and demand factors that can clue you in on home value. When supply is high, homes sell less quickly and for less profit. When supply is low, homes sell faster and at or above market price.
Local market conditions can fluctuate so it’s important to analyze the most recent sales data. You can also monitor market trends and forecasts to see if the market is close to changing.
Are Online Home Valuation Tools and Websites Accurate?
A popular way to get your home value is to use online valuation tools such as Zillow. These tools take information about your home and produce a home value. To use sites like Zillow, you simply input information such as your address to get a home value calculated for you.
While online home valuation tools are fast, easy to use and typically free, they do come with a downside: they are only as accurate as the information the algorithm has. A lack of data could cause your home valuation to be thousands of dollars off the mark!
How Accurate is Zillow Zestimates?
Zillow’s online home value estimates are known as “Zestimates”. Zestimates are popular because they are fast, easy and free. However, there are disadvantages from using online valuation tools.
The Zestimates are only as good as the data they are based on. Missing or inaccurate information can influence the price by thousands. Also, these tools don’t reflect improvements made on the property, mistakes in property taxes paid or exceptions to tax assessments.
Which Home Value Estimator is Most Accurate?
The accuracy of home value estimators relies on the data that has been submitted. It’s not unusual, therefore, for the values to be inaccurate at least some of the time.
Whenever you use a home value estimator, you take the chance of not getting a true value. Plus, not all home value estimators are created equal. Redfin has a 2.17% margin of error for on-market homes. Zillow has a 2.4% margin of error for on-market homes.
While online tools may be fast and easy to use, unfortunately their figures are not as accurate as those you would get with a realtor.
Do I Need to Hire a Professional Appraiser?
A professional appraiser can play an important role in valuing your home. They can provide accurate home values that you can rely on. The appraiser’s job is to visually inspect your home ensuring that it has the features claimed and that the home is in good condition. They also use important data like comparable homes in the area to assign a home value. A home appraisal will cost you approximately several hundred dollars.
However, it’s important to note that home appraisals will be required by the homebuyer’s lender so it is rarely necessary for home sellers to get an appraisal.
Is Fair Market Value the Same as an Appraisal?
Whether you are buying or selling a home, you may hear about appraised value and fair market value. These terms are often confused or used interchangeably, despite being much different. Appraised value is the value given to a home based on a professional appraisal. Fair market value, on the other hand, is what a home buyer is willing to pay for the home and is determined by market conditions that will fluctuate over time.
How Much Are Homes Selling for in My Area?
The speed at which homes sell depends, in part, on the type of local market. Currently, the Texas Hill Country is a seller’s market. This means that the supply for homes is low while demand is high.
The value of homes reflects this type of market. For instance, a 3-bedroom home median sold price is $203,200, an increase of 11.8% since the year prior. A 4-bedroom house’s median selling price has increased 4.6%, from $240,000 last year to its current price of $251,000.
Should I Hire a Real Estate Agent?
Hiring a realtor is always a good idea. Their expertise in real estate as well as deep knowledge of the local markets mean that having a realtor will save you time and money. A local agent will have intimate knowledge of the local markets and be able to give you the most accurate home valuation.
Realtors have their own superior way of valuing your home. To do this, they complete a comparative market analysis to determine the value of your home. This includes a comparison of comparable homes in the area, as well as taking into consideration market conditions.
Don’t settle for just any agent. Take your time and interview each candidate to find the right agent for your family. When interviewing realtors, ask them how they will determine the value of your home, how long it will take to get the valuation and what their track record is of selling homes at or above home value.
What Factors Impact Home Values?
Location is an important factor in home values and should always be considered. Both the size of your property and its layout are important factors that impact how much your house is worth, as well as the condition and age of the home. Additionally, certain features and updates can increase the value of your home.
To get the best home value for your home, get a comparative market analysis completed by an experienced real estate agent. This is the most accurate way to get your home value. An accurate home value will help you price your home to get the most attention and give you the most profit.
What Else Should I Know About Improving My Home Value?
Home improvements can be a great way to improve your home value. Beware, however, of making improvements that cause your home to be valued much higher than others in the area. When that happens, your home can lose the interest of buyers who can get a comparable home in the same area for significantly less.
An easy way to improve your home value is to pay attention to your curb appeal. Since your curb appeal is the first impression buyers get of your home, you want to make sure it is a good one. A fresh coat of paint, new landscaping or other small improvements can go far to increase interest in your property.
For the interior of your home, deep cleaning, organizing and decluttering will make your home much more attractive to potential buyers. You can help an interested homebuyer envision themselves living in your space by removing your personal belongings and returning your color palette to neutral. Your home should look like a model home when you are finished – fresh, clean and ready for its next life!
Can a Realtor Find My Home Value?
Yes! Shelly Salas has valued scores of homes just like yours to get its owners the best possible price. Familiar with the local market as well as what makes home sale prices climb, Shelly Salas can complete a comparative market analysis and tell you exactly how much your house is worth.
When you’re ready to take the next step on your real estate journey, contact us at 855-331-7653 or use the form on this page. We are ready and able to help you value your home and guarantee great results! Reach out to Shelly Salas today to sell your home fast and for top dollar!
More Questions Home Sellers Ask:
Is it hard to sell a house?
It depends on various factors like the market conditions, your property’s location, and how you price it. With the right approach and a strong real estate market, you can have a smooth process selling your house in Killeen.
How do I price my home when I sell it?
To set the right price, consider factors like comparable property sales, current market trends, and the condition of your property. It’s a good idea to talk to a local real estate agent who knows the area well and can help you determine a competitive and realistic price.
How do I find the best realtor?
Start by doing some research on local real estate agents, read reviews, and ask your friends or family for recommendations. You want to find an agent who has a track record of successful sales in the area and is great at communicating with you.
Who covers closing costs, the buyer or the seller?
That’s usually negotiable between both parties. You can work out a deal where you share the costs or figure out who pays for what during the home sale transaction.
What is the best time of year to sell a house?
Spring and early summer are your best bets. When the weather gets warmer and the days get longer, more buyers are usually out and about, which leads to higher demand in the housing market.
Are house prices in Texas Hill Country dropping?
House prices can fluctuate depending on the market and economic conditions. It’s a good idea to keep an eye on local market trends and talk to a real estate professional to get the most up-to-date information on pricing.
Is 2023 a good year to sell a house in Texas Hill Country?
It’s always wise to check the current market conditions. Consulting a local real estate agent can give you a better idea of whether 2023 is a good year to sell your house in. They’ll have the latest info to help you make the right decision.