What's My Home Worth?
The bottom line for the value of any home is that it is worth what someone is willing to pay for it and what someone is willing to sell it for.
The biggest mistake that any person selling their property can make is overpricing it.
We want to help you avoid the pitfalls of overvaluing your property, which can lead to a significant financial loss. To get an accurate valuation, consult an independent professional, such as a real estate agent or appraiser, who specialize in property assessment. Common overvaluation mistakes are outlined below. Accurate valuation is crucial for maximizing your return.
The number one mistake people is that they take the values that online websites give them as the value of their property.
These sites use algorithms which don't take into account whether or not your house has been updated, and are easily manipulated. Don't use these sites as gospel!
These sites don't know that you need a new roof while your neighbors roof is brand new.
These sites don't see that your house sits right on the street and that your neighbors have a right of way on your property to access their properties in the back.
These sites don't know that you just replaced all of your windows and had central A/C installed.
These sites may see that the city has your house listed as a two bedroom on their data records when you actually have a three bedroom with an office.
These sites don't know that you need major structural repairs to your basement and the foundation has major settlement cracks.
Don't mistake the actual value of the house with the sentimental value that you have.
Just because you have lived there and raised your kids there don't fall into the trap of thinking everyone will think your house is worth a billion dollars because of your experience in the property. Today's buyer is more educated than ever; smart sellers understand that crunching the numbers is always the best path to an accurate sales price. It is highly recommended that you get an unbiased opinion from a professional.
Renovations are for your comfort.
Don't think that you are going to get a dollar for dollar return for any home improvements that you have made while you were in the property. Most professionals will tell you that an upgraded kitchen or bathroom will add value to your property and make it more marketable but this is not true with every upgrade you make. Doing renovations to make you more comfortable while living in a property is human nature but don't make the mistake of thinking that when you sell the property that you will get a dollar for dollar return on your improvements.
Set your price, observe the reaction, and adjust your price accordingly.
Once you set your price you need to observe the reaction from the public and adjust your price accordingly. When you actually start advertising your property you need to see the reaction from buyers to your price and be ready to react.
If you start advertising and do not get a call in the first month, you have probably made the mistake of overpricing your house.
If you are advertising your house and have 10 people walk through it but receive no offers you have probably overpriced your house.