When the time comes to sell your home, it is crucial to determine the property’s value. Knowing your home’s value lets you set a price that attracts buyers and gives you a significant profit on the sale.
Explore why it is important to know the value of your home. Also, learn the factors that go into your home’s valuation and how to calculate your home’s value, so you are prepared when you move to sell in South Florida.
How is Your Home’s Value Calculated?
A home’s value is generally calculated based on several factors such as the property’s age, size, condition, location, and comparable homes.
Age
The age of your home factors into its market value. Older homes are typically valued at a lower price than newer homes. This is because older homes usually need updates or repairs to bring them up to the standard of newer homes. However, this may not apply if you own a historic home or recently remodeled it.
Size
Size matters when it comes to home value. Homes with larger square footage are valued higher than smaller homes. Buyers typically pay a per square foot price for a home, so more square feet equals a higher price.
Size can also refer to the types of space in your home. Homes with finished basements, attics, and garages are valued higher than those with unfinished areas because they are considered usable space. Usable space elevates your home’s value, whereas unusable space may have a negative impact.
Condition
The condition of your home affects its value. Homes that are well-maintained or homes with significant updates or renovations are worth more than homes that are run-down or outdated. This is why many people put money into making home renovations before a home value assessment or selling.
A home that requires a buyer to make significant replacements or repairs is not worth as much as a move-in ready home.
Location
Location is a significant factor in determining a home’s value. Typically, houses located in upscale areas or near shopping or downtown entertainment carry a high value. The same goes for homes near parks, schools, libraries, hospitals, and other family-friendly and community amenities.
Comparable homes
An important factor in home valuation is looking at comparable home values. This is typically done with a comparative market analysis (CMA).
This tool uses several pieces of data to compare your home to other homes in the area, giving you an accurate idea of what your home is worth. If you work with an experienced local real estate agent, they can perform a CMA to determine the market value of your home before listing it for sale.
In addition to these factors, your home’s value might be affected by trends in the national or local housing market, mortgage interest rates, and tax rates.
Why You Benefit From Knowing Your Home’s Value
It is essential to know the value of your home, especially if you are thinking about selling your property. Without having an accurate estimate of the value of your home, you risk undervaluing or overvaluing your property which can affect your profits when you sell.
Knowing your home’s value helps you set an attractive price for buyers, maximize sale profits and avoid low offers. It also gives you a cost-benefit analysis for making home improvements and helps you know when the time is right to sell.
Set an attractive price
By knowing your home value, you can price your home to be attractive to buyers looking in your area. Pricing too high for your neighborhood can keep potential buyers away. Pricing too low can also cause your home not to sell because buyers may perceive something is wrong with the house. Pricing your property just right helps bring in buyers.
Earn a profit on your home
Knowing the value of your home allows you to price your home to maximize profits. You can avoid low offers that don’t come close to the value of your property. You can profit from the home’s current value if you know its worth and don’t settle for less than that number.
Home improvements
Home improvements can increase the value of your home when you go to sell. It is important to know your home value to determine if you should renovate or sell as-is. If your return on investment (ROI) is significant and you can bring in more money with a minor update or renovation, it may be worth investing in home improvements to bring up your home value.
Determine sale timing
Recent increases in home values have shown that knowing your homes’ value is essential in determining when to sell. If your home’s value is rising, selling it may be a good idea. If your home’s value has decreased, you may need to adjust certain factors before you sell.
Determining Your Home’s Value
There are a few different ways to determine your home’s value. You’ll want to incorporate a few different methods to gain an accurate estimate of your home’s fair market value (FMV).
- Use an online home value estimator tool. Input your address or other requested information to gain an initial number.
- Work with a local real estate agent to obtain a comparative market analysis for your home.
- Hire a professional appraiser to perform a home appraisal. This will give you an appraised value rather than FMV, but it can still factor into your pricing.
- View your county’s appraisal website. It should list your home’s assessed value that you can use to determine the overall value.
Work With a South Florida Realtor to Sell Your Home
If you are looking to sell your South Florida home, work with a knowledgeable local realtor. Bryan Gold has over eight years of experience in the South Florida real estate market. Bryan can help you get an accurate estimate of your home’s value with a CMA so you can maximize profits from the sale of your property.
Contact Bryan today at (954) 464-3459 or bryan.gold@compss.com to discuss your goals for selling your home and determine the market value of your home.
