How Do You Know What Your Home is Worth?

How Do You Know What Your Home is Worth?

One of the most common questions I get as a real estate agent is, “How do I know what my home is worth?” The answer might seem simple at first, but determining your home’s true market value involves more than just looking up numbers online. Let me walk you through the process and explain why it’s important to work with a professional when determining the value of your largest investment.

Why Zillow Isn’t Enough

Let’s start with the elephant in the room: Zillow. While it’s tempting to look at their Zestimate and call it a day, relying solely on this number is like throwing darts at a wall and hoping for the best. Zillow’s algorithms can’t account for unique factors like your home’s upgrades, condition, or location-specific trends. A Zestimate is a general starting point but far from the accurate market value of your home.

The Role of a Licensed Professional

To truly understand your home’s value, you need a Current Market Analysis (CMA) done by a licensed real estate agent like myself or a certified appraiser. While appraisers often use specialized software, I align my process closely with theirs to ensure my analysis is as accurate as possible. This approach allows me to provide you with a realistic value, one that will stand up to scrutiny during negotiations or appraisals.

How We Determine Value

Both appraisers and real estate agents use similar methods to assess value, including:

• Comparable Sales: Reviewing homes sold in the past 90-180 days within a 2-mile radius. If the market is shifting quickly, I narrow the focus to more recent sales.
• Property Style: Comparing like-for-like homes (e.g., a two-story home versus another two-story, not a rambler).
• Key Features: Factoring in bedrooms, bathrooms, square footage, foundation size, and any upgrades or renovations.

However, there’s nuance involved. For instance, upgrades like a remodeled kitchen or bathroom can significantly boost your home’s value. But some repairs—like replacing a sewer line—are necessary but don’t necessarily add marketable value. It’s my job to differentiate between these and guide you accordingly.

Understanding Market Trends

Another critical part of determining your home’s value is analyzing market trends. I look at:

• Market Time: How long similar homes in your area stayed on the market before selling.
• Absorption Rate: The pace at which homes in your price range are selling. This helps us predict how quickly your home might sell once listed.

Why It Takes Time to Get It Right

I understand the need for instant answers in today’s world, but when it comes to pricing your home, rushing leads to mistakes. The best approach involves taking the time to:

1. Visit your home and understand its unique features.
2. Collect data on recent sales, active listings, and pending sales.
3. Analyze the information and create a detailed, side-by-side comparison of your home to others in your area.

I back up my findings with data and examples, so when I present my pricing recommendation to you, it’s not just a guess—it’s an informed, accurate analysis.

Why Who You Hire Matters

Choosing the right real estate agent matters. Selling your home is one of the most significant financial decisions you’ll ever make. Just like you’d carefully select a trusted doctor, accountant, or attorney, you should take the same care when hiring someone to sell your home. Make sure they can explain their process, show you their research, and justify their recommendations.

If you’re ready to understand your home’s true value, reach out to me. I’m here to guide you through the process, answer your questions, and ensure you feel confident every step of the way.

Let’s find out what your home is truly worth! Contact me today to schedule a free, no-obligation consultation. I’ll show you exactly how I determine your home’s value and help you make the best decisions for your future.

Reach out to Tom today and book a virtual appointment on your schedule! No obligation, just a conversation. Click the link below

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