Selling your home today can be relatively easy, especially since it is a seller’s market. With many people working from home, we are starting to realize how essential it is to have a comfortable space to live and work.
When selling your home, it is essential to know its value. Knowing the value of your home can help you sell it at a fair cost to new home buyers. Calculating the correct value will also help you turn a profit when you sell it.
So, how do you figure out what your house is worth? There are two key terms to know before learning how to calculate the worth of your home.
One term is fair market value. Fair market value compares your house to other houses in the surrounding area. You or your realtor can compare what other homes with a similar layout as yours are selling for. Knowing your fair market value can help you find the price point that buyers are willing to pay for your home. https://flhomebuyers.com/we-buy-houses-fort-lauderdale/ recommends finding a professional and experienced realtor to help with your comparisons.
The second term is your appraised value. To figure out the appraised value, a professional appraiser comes to your home to consider your home’s size, location, and condition, including any renovations. A loan company will give buyers of your home a loan based on the appraised value of your home, not the fair market value.
Now that we have that explained, we can provide some tips on how you can calculate your home’s worth.
1) Home Value Estimator
One tool that has come in handy for people buying or selling homes is a home value estimator. A home value estimator lets you find a ballpark figure of your home’s worth through an algorithm. The algorithm calculates recent sales and tax assessments in the area. There are many home value estimators, including from websites like Zillow, Redfin, and Chase. Although this is a great starting point, it is essential to remember that this is just a general figure. You should contact a professional realtor to help you calculate the actual value of your home.
2) Help From a Real Estate Agent
Speaking of realtors, you can ask a realtor for a free comparative market value. Realtors will usually provide this as a free service to help gain customers. The realtor will gather data about recent sales and comps in your area. Next, the experienced realtor will draw from the knowledge they have acquired about any unique characteristics your home may have to help solidify the value. They also take the neighborhood into account.
3) FHFA Home Price Index Calculator
An FHFA Home Price Index Calculator is another way to help find out your home’s value. The FHFA Home Price Index Calculator considers historical mortgage data to determine your home’s value based on the appreciation rate of homes in your surrounding area. Although this gives you a good idea of what your home will cost, it will not provide specifics. Which is why contacting a professional realtor is always your best bet.
Now is the best time to sell your home, and it is essential to know the actual value of your home before you sell to get a good deal.
