What's my home worth?
But it’s so pretty…
It must be worth more than that?!
The million dollar question when you own a home is always...what is it worth? How has the value grown? Or maybe you’re getting ready to put an offer on a home and are wondering, is this over priced? What would a fair market value offer look like?
Zillow and other websites that provide you estimated values do use some impressive data algorithms. However, these congregated data sites can often be way off. So we’ve put together a short tutorial for how to do this exercise yourself. As always, consult with your realtor! They are the best resource for advising on values :)
First, you need to know where to get your data. The best place to find data is always the original source. In most instances, the original source of all the data you see on all the home related websites like Zillow, Trulia, Realtor.com etc… is the local Multiple Listing Service or MLS. This database has the most up to date and accurate information and is where Real Estate Brokers pull real time data. In Colorado, that website is Recolorado.com.
Second, compare your home to the most similar type home you possibly can across all categories. Key words = ALL CATEGORIES! Slight differences in certain aspects of a home can turn your analysis upside down. For example:
Type- house vs townhouse or ranch vs. 2-story
Age-Comparing your house that was built in 1950 to the new build down the street is not an apples to apples comparison.
Location-Homes one street away. If your comp is in a different neighborhood or school district, the home could differ in value substantially. Stick to your neighborhood.
Time-The house that sold 3 years ago for a record price may not be the market today. Stick to homes sold within the last 60-90 days.
Size-Square footage is important but what you should really be looking at is above grade square feet AKA square feet above the basement. Don’t forget difference in size of house but also size of lot.
Performing this analysis will give you a much better price range for your home. From here its really a question of making minor adjustments which we will get into in our Appraisal blog!
Take in everything with a grain of salt. Mmmmm Salty snacks!
There is so much that goes into pricing a property and we have just scratched the surface here. Contact your realtor to help you take it to another layer. With these tools on your side you might just impress your agent!