Q & A with the Real Estate Expert

What’s Your Home Worth?

Q: Dear Jay, I’ve decided to sell my home and upgrade outside of my metro-area. The thought of listing makes me ask the question—what is my home worth? Over the past few years I’ve upgraded the appliances, re-modeled various rooms and landscaped, so I believe my home is worth much more today than it was when I originally purchased it. But, I’m not sure how to determine what the new value is based on those updates, the property itself and the current real estate market. What are the first steps to take in determining the new value of my house? – Jake.

A: Dear Jake: Putting a price tag on a home you’re trying to sell is a tricky thing. For starters, this property is your home – the place where you’ve spent the bulk of your time, made memories and put your style into. No, not only is it a large transaction, it’s personal. Pricing too low can leave you with a pit in your stomach and possibly a loss, while pricing too high can result in languishing on the market.

The best thing to do is sit down one-on-one with one of our real estate professionals and begin the valuation process based on your home, the neighborhood and the health of your area’s market. The next step is to complete a Comparative Market Analysis.

A Comparative Market Analysis (CMA) gives you, the homeowner, information about houses similar to yours. Such similarities can include size, amenities and location. It compares your home to those that are currently on the market, have sold, or were listed and expired within a reasonably recent time period, so that when your home goes on the market, it is listed at the best possible price to sell. This analysis is one of the most important steps you will need to complete as a seller.

It’s ideal to have your Comparative Market Analysis look back no more than three months when the market is in transition, and no more than six months when it is stable. Remember that a CMA is not a task you can complete through a DIY Google search; It must be completed by a licensed real estate professional.

Once the analysis of your home is complete, you’ll have a good idea of what the best price for your home will be. You’ll then be ready for a final appraisal and to get your home registered on your area’s MLS.

Remember that no matter how priceless your kitchen remodel, re-finished basement or how welcoming the landscape, your area’s market makes or breaks the value of each home and determines the price that a buyer is willing to pay.

If you’re ready to learn more and get started, give my team a call, we’re ready to help you get the most bang for your buck and get you on your way towards your upgrade.