How to determine the market value of your home
In basic economic terms, the value of a good or service is decided by what someone is willing to pay for it. The same principles apply to the value of houses. So, what is market value? The market value of your home is determined by what buyers are willing to pay for it. When the term Fair Market Value (FMV) is used, it’s talking about the price a house would sell for on the open, traditional real estate market in the current, usual conditions. If you’re wondering, “How much is my house worth?” there are many factors that go into coming up with the correct number.
Figuring out your home’s value helps you determine your asking price when selling a house, affects what property taxes you might have to pay, and is important for insurance purposes. One simple way to find your house’s market value is to get a cash offer from HomeVestors®. Our no-obligation, fair, cash offers are free and we don’t charge commissions or hidden fees.
The first step to coming up with the market value of a house is to look at all the factors that affect the value of homes. As prices continue to fluctuate, interest rates change, and neighborhoods become more or less desirable, the value of a house will frequently change as well. Here are the main factors that determine a house’s value:
Market conditions and home values are consistently changing and HomeVestors has seen it all. We’ve bought houses for over 25 years, and no matter what the market is doing, we’re dedicated to helping people sell their houses quickly and easily. With more than 140,000 house purchased, we’ve come across every type of red tape and know how to handle any complicated situation. Contact us to see how easy it is to sell your house fast for cash.
There are several ways to go about finding out the current market value of your house. Finding the right method for you depends on how fast, accurate, and cost-effective you want to be.
Use an online home value estimator
Simply search for sites that have tools to estimate home value. It’s important to use trustworthy sites to get better results. Online estimators tend to use algorithms and information gathered from databases that may be outdated, so online estimators aren’t the most accurate way to find your home’s value, but it’s a free and easy place to start.
Get a professional appraisal
Getting a professional appraisal does cost a bit of money, but it is one of the more accurate ways to find out the current value of your house. The appraiser will take into account the factors we discussed earlier, like comparable sales in the area, current market conditions, and the condition of your house. Most lenders require an appraisal as a part of the lending process for a buyer to acquire a loan. You could use the appraisal during the sales process to show that your asking price is in line with the appraised value. In that case, spending a few hundred dollars may be worth it.
Consult a real estate agent
If you’re looking to sell your house, you could talk with a real estate agent and ask them to do research and analysis of your house and the area to determine the value. They’re used to doing comparative market analysis to help homeowners come up with the asking price when it’s time to sell. They’ll most likely have knowledge of the area and know what type of house is selling and for how much and be able to see where your house fits in. Many real estate agents do a competitive market analysis for free, hoping that they’ll get hired to represent the sale of the house.
As part of their competitive market analysis, agents will look at how long it’s taking for homes to sell, what they’ve sold for versus the asking price, and what homes like yours are selling for. They’ll look for what they call “comps” meaning houses that have similar square footage, number of bedrooms and bathrooms, style of house, type of house (single-family, condo, townhouse, etc.) that sold recently in your area. They can use the Multiple Listing Service to find houses for sale in the same location with similar features to your own. The market value that a real estate agent can provide should be almost as accurate as an appraiser.
Get an offer from a cash home buyer
The definition of market value is how much someone is willing to pay for your house. In all the other options listed, you’d get an estimate or range of what your house is worth. If you get an offer from a cash buyer, which typically is a quick process, you’ll have a concrete number in the form of an actual offer to buy your house. Most cash buyers will give an offer for free, but some may charge hidden fees, so be sure to ask if there are any costs associated with the offer phase of the transaction. Some buyers will give an offer without seeing your property, but that number might not be what they’re willing to pay after they’ve toured your house closer to the time of closing, so keep that in mind.
With HomeVestors, our offers are completely free and we don’t charge commissions or hidden fees. When you book a no-obligation consultation, we’ll come and visit your house and may even make an offer on the same day. If you accept our offer, we can close quickly, sometimes in as little as three weeks.
Do your own research
Nowadays, there’s a lot of information online about houses that sold recently. You can look for homes that have sold in your neighborhood and the amount they sold for, to help give you an idea of what your house may be worth. This would only give you a general idea of the price range that houses are going for in your area, but if you’re wondering what the current price range is, it can be a helpful jumping-off point.
The county or municipality accesses your property’s value to help determine what property taxes you have to pay. It may not be exactly what buyers would be willing to pay for it, but it can give you an idea of your house’s value. In Atlanta, properties are assessed annually at fair market value and The Board of Assessors issues a notice of assessment each year. This information is available online to all property owners.
If you’d really like to know what someone is willing to pay for your house, contact us for a free, no-obligation cash offer. We’re happy to discuss your house’s value and answer any questions you may have about our process. How do we arrive at our offer? We have local property specialists living and working in Atlanta that know the area and understand the current market conditions. We’ll consider those factors and the comparative sales in your neighborhood, along with what we learn about your house on our visit. If you accept our offer, we can close quickly, sometimes in as little as three weeks, or later, if that suits your needs better. We also pay typical closing costs, saving you thousands. Call 866-200-6475 or fill out our online form to learn the market value of your house.