Home Evaluation: How Much is My Home Worth?
What is your home value? If you are thinking about selling, your first thought is probably how much can I sell my home for? You may start figuring a value in your head – “I paid this much, plus I’ve spent this much on improvements, and I expect to make this much on the sale – so the listing price should be $xxx,xxx. Right?”
Sorry, that’s not how it works!!!
Here’s the deal – a home should be priced according to market value. Market value is determined by what recent buyers were willing to pay – homes SOLD in the last 6 months. (This is the same process that appraisers use to determine appraisal value.)
We look at the price similar homes sold for, adjust for amenities, square footage, condition, etc. and come up with a market value range. At this point it’s up to you to decide where in that range you want to price your home.
Why? Homes that are overpriced don’t get showings. And no showings, means no sale, which means you have to drop the price to get showings. Now it’s been on the market for some time, so the days on market is larger – another negative to buyers. In the end, you may end up selling it for considerably less than market value range.
Underpricing your home has it’s own problems as well. Buyers immediately think, “How much work will it need?” and may not look at it if they aren’t the DIY type. (Plus, you get less for your home, and that’s not in your best interest. 🙂 )
So that all being said, pricing your home in the market value range is the best course of action.
How does one find market value range?
You can attempt to do it yourself, but that’s like trying to perform surgery on yourself, which we hope you wouldn’t do. REALTORS have all the data available to them and are trained to determine the market value range*.
You can certainly fill out your information in the above form for an instant home value. But that is based upon computer algorythms and a whole lotta math. Doesn’t account for an on the ground knowledge of the local market.
For a more accurate price analysis, give us a call at 605-593-9367. We’ll tell you what you need to do to make your home ready to sell, go over our marketing plan with you, and give you a true value of what your home is worth today.
* We just gotta point out, that if you have a unique home – a dome home or one on stilts….. finding the market value range can be hard even for us REALTORS. We use our training, data, and professional knowledge to give you our best advice.
Thinking of selling your Rapid City area home? We hope you’ll give us a call!Call Us Now to Get Rolling!