Would you like to know the current, and correct, value of your home?
Last night, with a couple of check boxes, I found out the value of my car. I can check my bank statements online within minutes. But what about my house?
Even with all the online information we can compile, determining how much your home is worth in today’s market is still complicated. All homes are unique and all homes have their own value. Of course the well known factors such as condition, location, size of home as well as local supply and demand trends.
We can go around and around with all of this, but the bottom line is still that your home is worth what a buyer will pay for it in today’s market.
But where do you begin? Here are some of the common approaches.
Use an AVM ~ Real Estate web sites are all beginning to place value homes and this approach is called an Automatic Valuation Model. But these web sites may be using out dated information and town tax assessments. The variations in this model can be huge, leading to you think that the value of your home is either higher or lower than it really is.
Hire an Appraiser ~ An appraisal prepared by a licensed professional include a visual tour of the home in person, and the appraiser will look at current “comps” or comparables of homes of the same size close to you that have sold in the past six months. The appraiser will also review local market trends and be aware of the local supply and demand. But beware, and this just happened to me, appraisers are human and I had two appraisers come up with two different values on the same home within 2 weeks. And 2 values by a LOT!
Do it Yourself ~ I don’t recommend this. Even if you keep up with current market conditions and know what some homes around you have sold for, placing a value on your own home is hard. This is your home, and you have an emotional attachment to it even if you think you don’t! When I put my home on the market, I had an appraisal done and also asked a fellow REALTOR to give me their opinion as I just couldn’t be as objective as I needed to be to find the correct value of my own home!
Have a REALTOR do a CMA ~ Ask a local REALTOR to do a CMA, a Competitive Market Analysis, on your home. Using a local, hands on the ground real estate professional who access to the absolute latest sales and current inventory will give you the best and most reliable result available.
If you’re in the MidCoast Maine area, thinking about selling your home and wondering how much it might be worth in today’s market, please call me, I’d be happy to help!