When selling your home, you may ask yourself, "How much is my house worth?" The most important first step you can make in selling a house is calculating an accurate fair market value. Price your home too low and you may lose thousands. Price your home too high and you may price yourself out of the market and never sell your home.
If your house is for sale for a long time (buyers and agents can find out how long your home has been for sale), a potential buyer will think you might be getting desperate, so they will make low (and often insulting) offers.
Zillow.com Zestimate (FREE)
Conduct your own research (FREE)
Get a (CMA) Comparative Market Analysis
Get an Appraisal by a Local Appraiser
Factors that affect a home's value
Additional Costs to consider
Test the Waters
Leave room for negotiation
There are several ways to determine your home's value using the Internet—some are Free and some are a minimal cost. Home values calculations are determined using sold prices, public records of assessed value, and other real estate information.
FREE Home Estimate - Use the Home Value Estimator at Chase.com to get a free estimated market value of your home or the home you are interested in. You'll also see recent sales of nearby homes that were used to calculate the value of the home.
FREE Home Estimate - Homes.com is a great resource to estimate the value of your home. View listing information about other homes for sale on your street. It also provides demographic information such as Population Growth, Education, Crime Rate, Schools, Job Growth, Unemployment Rate and Median Household Incomes.
FREE Home Zestimate - Zillow.com has a powerful online tool which instantly calculates a "zestimate" value of your home based on your square footage, number of bedrooms and baths, homes sold recently in your neighborhood and more. This amount changes daily as info is updated into their database.
ACCURACY: Zillow claims to be within 10% accuracy of the value of the home. We find that because of the mass amount of data going into Zillow's calculations everyday, the "zestimate" of your home can vary by tens of thousands or more each day.
CONCLUSION: Zillow never claims that one should use the "zestimate" tool as a replacement for an appraisal. Zillow encourages you to use the calculation as "a good starting point" in researching the value of your home.
Type (Don't compare your Home for sale to a Condo)
Neighborhood (Compare homes only in your neighborhood and school district)
Size (Chose homes similar in size to your home)
Amenities & Views (These can vastly increase or decrease the value or salability of a home: Private pool, tennis courts, walking trails, lake views, mountain views, privacy, street traffic, convenience, subdivision, curb appeal of surrounding homes)
Number of Bedrooms, Bathrooms
Garage - none, 1 car, 2 car or more, street parking, ease of pulling out into the street
Age of Home
Style of Home (Some homes can be harder to sell because they are very dated)
Lot size, Landscaping and upkeep
School District can be an important selling point!
Price Varies - A CMA is an informal estimate of your home's market value compared to comparable homes in your neighborhood. If you don't have the time to do your own research, a real estate agent can whip one up in no time. If you are considering listing with an agent, they will usually do a CMA for you at no charge. This will also give you a great idea of what your asking price should be. This report is also useful in helping you make the changes needed to make your home for sale more desirable than your neighbor's home for sale.
From $200.00 to $400.00 - A certified appraiser will come to your home to perform a physical valuation of your home at a given point in time. This is usually very affordable, ranging from $200 - $400. An appraisal carries a lot of weight in justifying your asking price with potential buyers. The appraisal will give you a very good estimate on a realistic listing price that is reasonable and competitive.
The appraisal takes into consideration such things as:
There are other considerations that will raise or lower how much the home is valued at. They are:
As you calculate your Asking Price, consider those extra costs of selling your home (or preparing your home to sell) such as improvements, repairs and advertising. Include budget in your selling incentives. For instance, you may want to offer a "cash back at closing carpet allowance" if your carpet is old or a non-neutral color. People love to know they will get cash back at closing.
It's critical that your home be competitive in price. Buyers do comparative shopping and act fast on a good deal. A good priced home will attract attention and generate activity from home buyers and brokers. If you aren't seeing any traffic from buyers, it is a clear indication that the listing price is not satisfying the marketplace test.
Buyers like to know they are getting a good deal. If you list your house for $250,000 and refuse to negotiate an offer received of $245,000, your potential Buyer may not feel that you are a willing participate in this "negotiation".
If $250,000 is your goal for this sale, you may want to set your price slightly higher so there is room for negotiation... about $260,000 to $265,000. But don't price it too high or you won't get any phone calls. If you receive an offer and "negotiate" to your desired price of $250,000 - then your goal is met and the buyer is also happy to have gotten a good deal.