How to Calculate the Right Price for Your House

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WHAT’S MY HOUSE WORTH?

Looking for a home value estimator or interested in learning what your home is worth?

Our home price calculator can help you find it’s true value.

The first step to selling your house is to figure out how much you want to list your house for. Obviously you want to make a profit off the investments that you made into your house.

In order to achieve this desirable outcome, you need to know what the house and all the improvements you made to it are worth.

Truth is, there is no science behind the value of a house. Many outside factors affect its worth everyday. Not to mention, the value of any property is unique to each person.

Some people think it’s worth spending $200 on a lamp. Others think $50 is a more reasonable price. Value is open to interpretation.

Therefore, there are a few ways to go about determining the value of your house that can give you solid results. We will discuss what some of those techniques are and different things to look out for when putting your house up for sale.

Online Price Calculators

Any big name house realtor such as Redfin or Zillow has their version of a home value estimator (or as they call it an automated valuation model or AVM).

These companies take public records, tax assessments, and comparable house values in the area into consideration and determine the value of your home.

One thing to consider when using these is to look for the “confidence score,” when they generate the estimate. This number is based out of 100. So, they will let you know just how confident they are in their AVM’s projection.

For instance, if they are 80% confident in the score, you can expect to make up to 20% less than what’s listed.

how-to-calculate-the-right-price-for-your-house
Find out how much your house is worth before you sell it.

Get An Appraisal

A solid way to determine the value of your house is to get someone to come in and look at it. Contacting an appraiser sets a good foundation toward figuring out how much to list your house for.

There is certain criteria that an appraiser looks for in a house that determines its standing in the market.

Many factors both in the home and outside of it can add perceived value to a house. This includes:

  • Updated Appliances
  • Pool
  • Additions
  • Extra Bathrooms
  • Manicured Landscaping
  • Heated Floors
  • Updated Electrical
  • New Roof
  • Fenced-In Property
  • Comparable Prices of Other Houses on the Market
  • Adequate Parking
  • Good Education Systems

An appraiser’s opinion is objective. It’s their opinion, but that may not be consensus. So, you might want to get a couple of appraisers. Also, keep in mind that potential buyers will have their own appraisers with their own set of opinions as well.

Know Your Market

Whether you use an AVM or get an appraiser, you now have a foundation. Before actually listing, take one more thing into consideration…your market. Are you in a buyer’s or a seller’s market?

          If You’re in a Buyer’s Market…

Expect your house to be up for sale for a while. There are far too many properties out there that exceed the demand. So, people looking in your area will most likely go with the cheapest.

          If You’re in a Seller’s Market…

People want to come into your neighborhood and the opportunity to get in is slim. Therefore, you can expect to sell fast and for a good chunk of change.

Or You Can Sell As-Is

If you don’t feel like haggling over every last dollar that your house is worth and just want to get rid of it, that’s an option too. Companies like We Get Properties will buy your house as-is.

It doesn’t matter if you live in a buyer’s or a seller’s market. Repairs that are needed won’t be your problem. You don’t have to worry about the value. You get paid cash and the house is out of your hands.

David Carter

AuthorDavid Carter

Serious about helping people understand how to sell or save their home. I cover stories related to all things real estate. I'm interested in informing the public on ways to improve their daily lives by having a home they can afford.

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