This is the most common question we get asked as realtors when a client comes to us looking to sell their home. Home value has the ability to speed up or slow down the process of selling your home. Wondering if your home has positive equity? Keep reading to learn the five questions you should be asking yourself to determine market value.
1. What factors can affect my market value?
Market value is defined as the value a home would sell for under normal conditions — excluding an urgent situation like a job relocation or divorce. Essentially, it’s an estimate for your home. To ensure it’s as accurate as possible, you’ll need to consider these specific details:
This is where “curb appeal” comes into play. These characteristics may include but are not limited to the age of the home, its condition, the lot size, architectural style, and paving.
This pertains to the interior of your home which can include the number of rooms, square footage, condition, the age of appliances, energy efficiency, and more.
Real estate agents often look at the location to further assess a home’s value. Some of the aspects considered include the market demand of the area, the neighborhood, or maybe even the school district.
2. How do I get started?
Most often, appraisers and real estate agents follow a sales comparison method to determine the market value. They’ll research similar properties in the area, which provides a good starting point. The important thing to remember, though, is to compare to homes sold at market value. If they were sold under other conditions, it may skew your estimate.
3. Where can I find comparable homes?
There’s a multitude of places you can look to find comparable real estate. Check out your local assessor’s office. They may provide a list of recent sales or be able to account for the neighborhood’s history. You also have the option to check out municipalities and online databases.
When searching online, use keywords like “real estate database” then the location. This pulls narrowed results and saves you tons of time. Real estate agents are also a great resource. They’ll be willing to share their expertise and sales information of the area.
4. What differentiates my home?
You probably won’t find an exact comparison to your home — which is completely alright. You’ll need to adjust to the prices of multiple properties to get a better gauge. You’ll need to identify what increased or decreased the sale prices.
Take this information alongside your home and compare. You’ll notice some trends that you’ll most likely consider when assessing your home’s value.
5. How does value affect my property taxes?
Property taxes are based on your estimated market value, which is an important reason to follow this process. A local assessor estimates individual property value whenever a property has undergone a physical change.
So, be aware of some communities that have not undergone an assessment in a long time. The estimated value here, may not be accurately reflected on your property tax bill.
Real estate can be a bit confusing, but Rieger Realty is here to guide you through the process.
If you ever have any questions, don’t hesitate to ask. We pride ourselves on our knowledge of the Norman area and are always here to help.