If you’ve been paying attention to the Boise area housing market, you will know that moving to Boise is the hot thing to do right now. For many potential sellers who were on the fence about selling their homes due to the Coronavirus, it has helped them make the jump to listing and selling their homes. The first step in selling your home is determining your home’s value. Not only will knowing your home’s value help you sell your home, it will give you a starting point for how much you will make from the sale. This article will outline 5 ways to determine your home’s value.
Compare your home with recently sold homes in the immediate area
Often referred to as comps, these are homes in the same neighborhood or closely surrounding area that have sold recently. Things to consider are: similar square footage, similar amenities, yard size, unique upgrades, as well as overall neighborhood home values. From there, look for factors like listing price, sold price, and days on market. Combining all of these will help determine your pricing strategy. The best part about finding comps is that you don’t have to do it yourself. Your real estate agent can help you out. Which leads into the next point…
Get a free home value estimate on Build Idaho
Build Idaho is full of helpful home buying and home selling resources. One of the most used tools is our free home value calculator. Simply fill in your home’s information in the form and click [submit]. One of Build Idaho’s expert real estate agents will calculate your home’s value using the comparative methods mentioned above. After that, they will reach out to you and provide a a full report. Whether it is through email or over the phone, you and the agent can discuss the details of the home value report and fill in any information gaps. Being armed with this information and being in contact with an agent are the first two steps to selling your home.
Use the Federal Housing Finance Agency estimate
The FHFA price index calculator is a program provided by the federal government to give you an estimate of your home’s value. It is important to note that the FHFA is little better then a Zillow “Zestimate” because it compiles base data based on when you bought the house, where it is located, and general home price trends. The FHFA and Zillow estimates provide a general base estimate, but a local agent’s home value estimate is much more accurate.
Get your home appraised
A home appraisal is one of the most accurate ways to measure your home’s value after the real estate agent’s comp assessment. A home appraiser will look at your home’s size and location, as well as the condition of major appliances and home systems (HVAC, water heaters, etc.). The appraiser will also look at the exterior and roof of the home, and evaluate updates and additions to the home. With the appraiser’s home value assessment in-hand, you can decide to sell your home as-is or upgrade/update weak spots in the report. Many home upgrades see a high-return on investment thanks to the value they add to the home.
One final note
It is important to remain fairly objective when it comes to your home’s value. Your home will have a lot of sentimental value and that may tempt you to artificially raise the listing price. However, your home’s value is a number that is determined by facts: market conditions, comp values, age, style, location, and size.
Pricing your home too high will likely keep it on the market for too long, which is a turn-off for many buyers. This will result in your agent lowering the price closer to the market value, but a “price lowered’ tag on the MLS will have many buyers asking “what could be wrong with that house?” The bottom line is: price your home correctly and make more money.