How Much is My Home Worth?

The Market Value of your home is the price a home will command from a rational purchaser under normal conditions. Market Value will always be a local phenomena. While demand is certainly influenced by national circumstances such as interest rates, the local economy will generally be the key factor in both demand and supply of homes.

The worth of your home is not based on the assessed value for tax purposes and neither is it based on:

  •  How much you paid, improved or owe for your home
  •  How much cash you need from your home
  • The sales price of your neighbor’s home or the appraised value of your home when you refinanced last year.

Considerations that help determine market value, include:

  • Local Community
    Community services and thriving local businesses ordinarily translate into healthy property and home values.
  • Perception of your Neighborhood
    Take a look around your neighborhood. Is it safe? Is it visually appealing? Or does your neighborhood have a high crime and poverty rate? Real estate agents, as well as potential buyers, look into these qualitative and quantifiable properties while assessing your home’s resale value. The perception of your neighborhood can affect your home value either positively or negatively. The positives are that the neighborhood will increase the value of your home.
  • Quality of the School District
    High quality schools raise your home’s value. Poor school districts and low graduation rates have the potential to negatively impact your home’s value. Research the schools where you want to buy…a great website is
  • Community Amenities
    Local amenities such as transportation, schools, parks, retail, and libraries have the potential to enhance local property values. The walkability of an area can add value to a community. Public transportation also plays a role in adding value to your home. Higher home values tend to show up in walkable neighborhoods near good public transportation where people can live without an automobile. A well -kept community will reflect more positively on your home ‘s value. Additionally, a community governed by a home owner’s association can enhance your home’s value.
  • Urban Planning and Property Zoning
    Zoning decisions and community development plans can either positively or negatively influence your home’s property value. Are local shopping, entertainment and restaurants near by? Is there public transportation available or easy access to these locations? What is nearby the home for sale? These important issues are things real estate agents need to consider before pricing a home.
  • State of the Economy
    Home sales and the state of the economy go hand in hand. When the economy is flourishing, asking prices for home sales go up. When the economy is depressed, it will be more difficult to sell your home, therefore influencing to a lower asking price. When supply of homes “For Sale” are decreased.

Securing a Comparative Market Analysis
Other homeowners use the advice of experienced Realtors with specialized software available through their Multiple Listing Service. These Realtors can provide a “comparative market analysis” based on similar properties that have sold within a recent time period. Comparing sold homes with similar features and improvements within a designated area, and also including active homes currently on the market will give the Realtor a better picture of the competition in your specific market area. The more “recent comparable” homes in the analysis, the better. Looking at both “sold and active listing” information is the key to determining the correct list price for your home. Prospective buyers will be not only look at recently sold homes, but will also be looking at active, competitive homes as substitutes for a reduced price.

Determining the Appraised Value of Your Home
A certified and trained appraiser can provide a formal “Appraised Value”  which is an approximate market value based on a visual evaluation of your property and improvements. The appraiser will compare the home to similarly sold homes with same characteristics, and homes presently on the market in the same subdivision/community. Many homeowners will obtain an Appraised Value from a certified appraiser prior to marketing their home to get a better idea of what their home is worth.

Pricing Your Home at Market Value
Pricing your home at or near “market value” will is the most important aspect of marketing your home. The worst thing to happen is to have your home linger for months which would indicate an overly priced home. More days on the market without any movement will alert prospective home buyers that you might be more than willing to agree to less than list price. Additionally, buyers might also wonder what might be wrong with the house besides it being overpriced when it sits too long on the market.