Friday, March 03, 2017 / by Jason Huerkamp
Whats Your Home Worth and How Do You Know That For Sure?When you are considering selling your home and you need to know what its worth, then it could be time to do your own homework first before calling in your realtor and getting down to business.
Here are a few things you can do to find out what your home is really worth.
Analyze Your Neighborhood
You may have lived in your neighborhood for a long time and it may be a good idea to look at it with new eyes. Take a drive around and see what the neighborhood looks like in comparison to other similarly priced neighborhoods in your town. Are the gardens, pool, playground, fencing in good condition or does it look less than inviting. That job may be for the HOA and there is little you can do about that but it gives you the idea what prospective buyers will do even before they look at your home.
What did Other Homes Sell For In The Area
Find out what the other homes in the neighborhood have sold for and which are recent sales. (In Minnesota we will help you with those recently sold figures, just send us an email with your neighborhood, and we will be able to assist you) Compare your home to that home. Be sure to check the photographs to see what condition the home was in when it was offered for sale. Did the seller help with any of the costs relating to closing or perhaps carpet replacement costs or something similar? That would affect the actual selling price of the home and the price per sq ft calculations.
Sq Ft Comparisons
Once you know the Square Footage of homes that have sold you will be able to do a quick calculation to see how much per sq ft their homes have attained. Don't forget to check and see if there were any costs involved paid for by the Seller, in order to give you a realistic figure.
Are the Schools In Your Location Sought After
The demand for great schools always makes a location more desirable and with that there will be a bigger demand for homes in that area particularly Spring thru Summer when changing schools and relocation are number one priority for those on the move. Prices are affected accordingly.
New Construction vs Older Homes
Take into account that if your existing home is in an area where there is a lot of new construction, your home may not be as desirable as that shiny new home. It doesn't mean your home is not as good as that, but depending on price range, that can affect your valuation.
Put Yourself In the Buyers Shoes
It is very difficult for a Seller to do this, but its the best way to take a real look at your home
- Picture who you buyer might be - where does he|she possibly work?
- What age group could they be?
- Would they be likely to have kids, pets or are they first time home buyers or scaling down/up buyers?
- Are they likely to have equity to do repairs or are they on a budget?
- What are they comparing your home with and what is it you need to do to compete fairly?
- Can you compete with the other homes in the neighborhood | nearby location | new construction? or
- Do you possibly need to do a price adjustment to make sure your home is comparable?
- Do you need to do some work on the home in order for it to compare favorably with another
What time of the year are you planning on selling in? That can make a difference to the price when selling your home.
Seller Home is His Castle
Because the Seller is often emotionally attached to the home, they cannot always price their home effectively. Either they think the home is worth more than it truly is or the opposite can happen. The Seller knows the house personally and sometimes he | she thinks it is worse than it is.
Time To Call In a Real Estate Professional
When you have done some homework and you have a realistic price in mind, its a good time to call in your agent and have a discussion with them about pricing and marketing your home. The Realtor will come in with a Comparable Marketing Analysis, they should know the area intimately and be able to answer some of your questions. If there are any discrepancies in what your feel your home is worth and what they think it is worth, then at least you have some research to back up your thoughts.
Of course the Real Estate Professional cannot tell you exactly what a buyer will pay for your home, but they will have the experience to give you price bands of what you could expect. If you are still not in agreement, you could pay for an appraiser to come out and give you another opinion. Your Realtor will have the experience to work with you to get it sold.
Use our "What's My Home Worth?" application and see how much your home is worth in today's market. See exactly how much your neighbors have sold their home for and work with us to get your home sold in the shortest possible time, for the most amount of money, with the least amount of hassle.
Huerkamp Home Group
Office Phone: 952-746-9700
Cell Phone: 952-746-9703