Home Much Is My Home Worth?
This is a common question that people across the country are asking. From Minneapolis, MN to Miami, FL to San Francisco, CA to Portland, OR and everywhere in between. As a realtor in Madison, WI I am asked this question almost every day.
Some people try to figure out what their home is worth by adding the annual appreciation average of homes in their city. They figure if they paid $200,000 for it 5 years ago and the average appreciation has been 8% over that period than their house is worth $293,865. Is this correct? Maybe.
Others will try to base their house value on what properties in their neighborhood are selling for. They find houses that look similar from the outside and are approximately the same size and base their value on what it sold for. Their neighbors house which was an approximately 2000 square feet ranch sold for $315,000. Figuring their house is about the same size, age, and style- they should get $316,000. After all it is 2 months later! Is this correct? Maybe.
Maybe there is a % to add to the tax assessment. Or an online program to enter all of your homes data and out comes a price.
As it turns out there is no such magic pill. Every thing must be taken into account when figuring out your homes market value.
What are comparable homes in your neighborhood selling for? Are they comparable in size and age only? Do these comparable homes have tile floors and maple cabinets, where you have vinyl and oak? Or do you have gleaming wood floors and an exposed lower level where they do not have these desirable features? Is your house on a cul-de-sac where the comparable homes are situated on busy streets?
Are interest rates higher or lower than they were before? Is it the middle of summer, the beginning of Spring, or the dead of winter. Is your 3 year old home going to be competing with brand new homes? Maybe even in the same subdivision. Has a new company just came to town along with 500 of their employees who need homes or condos in your area. Has the major employer in your area just announced that they are relocating to a different city?
This is just quick example of things that can affect your homes resale value. In order to answer the question "How Much is My Home Worth?"- Consult a realtor.