What is Your Home Worth?

    When selling your home, one of the most important first steps is to determine what the property value is. There are many different factors that go into determining a home’s value, and as such it can be quiet confusing to someone who is not an experienced real-estate sales agent.  The very first thing you can try out is our new home valuation tool here: www.trulinerealty.com/home-valuation
    If you prefer to do it on your own, first step in determining what your home is worth is to look at what other homes in your area are selling for. Location is a huge factor in determining a home’s value. Once you see what the homes in your area are selling for, you can then look for the differences that might make your property worth more or less. There are a wide variety of factors that can go into this, but some of the most common are the size of land the house is on, the square footage of the house, any updated features such as granite counter tops and stainless steel appliances, etc.  Many people like using Zillow.com’s Zestimate, but be careful as sometimes the prices can be very wrong. TruLine Realty always recommends using a professional.
    One thing you must understand is that the physical structure of the house is not what makes the majority of the value. The most important piece of a property is not the house itself, but the land it sits on. This is due to the fact that more land will never be produced. There is a finite amount of land, which is what causes home prices to skyrocket. The more populated an area is, the less land there is to go around, and the appraisal of a home goes up based on this factor. This is why when a city becomes more developed, you see high rises and huge increases in property value, there is simply less land available. The demand exceeds the supply.
    While the structure does decrease in value, it still plays a very important role in determining what a home is worth. For instance, if there was a 5,000 square foot house and a 7,000 square foot house that were exactly the same, the 7,000 square foot house would sell for more, of course. The size of the house plays an important role in deciding what to list your home at.
    When using a professional to determine your home’s value, there are three types of valuations. A Broker’s Price Opinion which is a determination of value by a hired sales agent. This method is typically used when mortgage companies or lenders determine that the expense or delay of a certified appraisal is unnecessary. There is then the real-estate agent market analyses, which is based on comparable sales in the neighborhood or area. An appraisal by a licensed appraiser is a written value of the home itself, based on land, features, and comparable sales in the area. Choosing the right appraiser can be a task all on its own. With an improper appraiser, your home can be undervalued. Bankrate.com suggest that you choose an appraiser from your county, and to make sure they come to your house. Many appraisers simply pull up listings on the MLS and determine the value of your home based on others that sold in the area.
    Deciding on an estimate of what you want to sell your home for is a great first step to getting it on the market. After you have an idea of what you want for it, contact TruLine realty to get a professional opinion of your home’s value as well as to get it sold!

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