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How Much Is My House Worth
re you wondering "how much Find at least three similar homes
is my house worth?" I have nearby that have sold within the
two answers for you. First, last six or maybe twelve months
if you don't really need to move, (these are your comparables).
it is worth whatever you say it This information is in county
is. If you think, "I wouldn't records (sometimes online now),
sell this house for less than or ask a real estate agent with
$300,000," then it is worth that access to the multiple listing
much to you. If you need to sell service. Get the sales prices,
it, though, what it is worth to terms of sale, description of the
you is irrelevant. property, and other information.
Market value is the only relevant Take your first comparable, write
value once you are ready to sell. down the selling price, and
This is the value according to review the description item by
all the home buyers out there. item. Add to the sales price of
They don't care what you spent the comparable for each thing it
renovating the house, or what you doesn't have that your subject
originally paid. Spend $50,000 home has, and subtract for each
adding a pool, and they may only thing it has that your subject
pay $20,000 more for the home. home does have. This sounds
Real estate is worth what the confusing, but it will make sense
market says it is worth. once you try it a couple times.
How Much Is My House Worth - Part For example, if your home has a
One second bathroom, and the
comparable doesn't, add the value
To estimate the market value of of the bathroom to the sales
your home, use "comparables." price of the comparable. If the
This is how appraisers do it. comparable home has a blacktop
driveway, and your's doesn't, add the three figures and divide
take the value away. You'll have by three. The indicated value of
to estimate what these things are your home is $254,300. This is
worth, or ask for professional about what it should sell for.
help.
How Much Is My House Worth - Part
You are rectifying differences, Two
to see what the comparable home
WOULD have sold for if it was Appraisal is an inexact science.
just like yours. If a comparable If you can only find houses sold
sold for $242,000, with one less over a year ago, you should
bathroom than your home, and a probably estimate appreciation in
bathroom is worth $15,000 in your the area, and add that. If one
area (ask a real estate agent for sold with seller financing, you
help with these figures), then have to adjust for how this
you ADD $15,000 for the bathroom affected the price. These
it doesn't have. Subtract, say complications make it tough to
$5,000, for the paved driveway it appraise your own home, so what
does have, that your home doesn't if you need help?
have. $242,000 plus $15,000,
minus $5,000 gives you a There are other ways to find out
comparable sales price of what your house is worth. You can
$252,000. pay for a professional appraisal.
This way you will also have
Do this with each comparable, something to show to prospective
then average the three comparable buyers who doubt the value. Be
prices. If, for example, the sure to tell the appraiser about
three comparables now have anything she might miss, like a
adjusted sales prices of newer roof, or specially imported
$252,000, $262,000, and $249,000, tiles.
estate agent on your own, and ask
What about online services that "How much is my house worth?"
tell you what your house is Find one who has sold homes in
worth? They don't have enough your area, and ask if she can do
access to sold prices of homes a "market analysis" of your house
around the country to have a value. Normally this is free,
program figure the value of your with the agent hoping to impress
house. Instead, they usually just you and get your business. Often,
take your basic information, if the agent has experience and
e-mail address, and phone number, has worked in your neighborhood,
and sell this "lead" to a real they'll do a better job than an
estate agent that will contact appraiser, and the price is
you. right.
It is better to find a real
About the Author:
Steve Gillman has invested in real estate for years. To learn more, get a free real estate investing course, and see a photo of a beautiful house he and his wife bought for $17,500, visit http://www.HousesUnderFiftyThousand.com
Read more articles by: Steve Gillman
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