What is the value of my home?
This is the first question that comes to mind whenever we consider buying or selling a property. There are various ways to find the price of your house and this article will enlist most ideas. It is essential to note that:
Okay so, we have established our criteria. How do we calculate the price of a property?
Various websites can give you a price estimate. Zillow, Trulia, Redfin, and many others have online calculators. The truth is that these online calculations are not reliable.
If you take a snapshot, you’ll see that these prices differ by thousands of dollars. The estimates don’t match up. One website may show you $250,000 while the other gives you $285,000. Now that’s significance variance, and you cannot trust these resources. You might have also read about reports how Zillow zestimate is not the exact value of your house.
Software is becoming better, but we think, at this point, it’s best not to trust online estimates.
These factors affect the value of a house. Natural disasters play their role. Homes in the flood zone have a lower price and a higher insurance premium compared to remote areas.
Similarly, if your home is in a great school district, that’s a value-add point. If you notice carefully, location is the critical factor describing the price of your house. Your location dictates the cost of the land, and it should be the same for every home in the neighborhood.
Get in touch with a local realtor and ask about the price of land. Their estimates will be similar. The value of the land for 1400 square ft. should be the same for every home in the local area.
Next, you need to determine the price of the ‘grey structure.’ If today, you have to build a house, what’ll be the cost of building the foundation?
You can get an estimate from a construction website or a contractor. The cost of ‘grey structure’ plus the value of amenities is the minimum price of your property. You can establish this as the baseline. Add the value of renovations, appliances, amenities, and you would have found a good price estimate for your house.
That analysis is often the most accurate price prediction of your property. Contact three realtors in your area and ask them to provide a CPA.
During the comparison, we consider recently sold homes in the area. These properties must be located within a few miles radius. These homes should share a similar lot size, space, style, and layout. A comparable price analysis gives you an idea about the price of recently sold homes in your area. Let’s say, homes in your neighborhood are selling for $275k-$290k. That means, your home can fit in this range too.
If you renovate your home, it can command more than $290k, but even in average cases, you can get close to $260k-$270k.
It’s best to contact at least three realtors in the area. Get the price opinion and calculate the average price. You should also do a comparable price analysis so you can sell your home for a fair price. Contact us to get a fair cash price offer for your property.