OUR CLIENTS ARE ASKING
So…What is My Home Really Worth?
Home prices have increased substantially over the past few years. Whether you are thinking of selling or not, you may be asking, “So…what is my home really worth?” Let’s look at some of the approaches you may come across to determine the value of your home.
Did you receive your property tax statement last month? You may have gasped at the % your value went up. This is a yearly assessment determined by your tax district’s property assessor. The assessors’ phone is busy in April as owners argue their home is not worth what the statement is indicating, but it’s not the value owners are arguing, it’s their property tax increase.
Automated Valuation Model (AVM)
If you have ever looked up your Zestimate that Zillow made so popular, you were using an AVM to determine a value on your home. These are math-based algorithms that compare similar elements. This scientific approach, however, lacks information about the condition of your home, functionality of the space, and special lot or neighborhood features that may play into the value.
This is typically ordered by a bank. Unlike an AVM, a real person usually walks through the home to determine a price by age, location, sq. footage, bedrooms, bathrooms, and overall condition. Appraisers are often restricted however, to compare only with sales in a set time frame–usually less than 6 months.
This is the approach a real estate agent will use to determine the price your home would most likely sell for in the open market. The actual value is determined by what a willing buyer would pay under the current market conditions for the features the home offers. This is where a seasoned real estate agent who is active in your neighborhood can make a difference. There are many nuances in the market that algorithms, assessors, and appraisers do not factor in.
The “three A’s” (as our team likes to call them), are a good starting point, but when you are ready to put your home on the market, connect with us for a market valuation where we combine numbers with market knowledge to determine your home’s value. EMAIL US.