Your home's market value might not be something you think about often if you plan to live in it for many years to come.
However, knowing the market value of your house suddenly becomes extremely important to you when you want to sell, upgrade, or possibly refinance.
If you're not aware, market value is the amount that a prospective buyer who is well-informed about the real estate market in your area would be prepared to pay for your home.
That value is determined by several factors, including:
Size and features such as a swimming pool, heated floors, and smart appliances, as well as the number of bathrooms, bedrooms, garages, and other spaces it has. These are essential considerations when establishing a home's market value.
Although larger homes often fetch higher prices, the layout and efficient use of available space also influence a property's valuation.
Location. Proximity to attractive amenities like parks, schools, malls, and transportation hubs and a neighborhood's overall desirability can significantly boost your home's market value.
Time of sale. The U.S. property market fluctuates throughout the year. In Pittsburgh, for example, selling your home in the spring – when buyer demand is highest – can fetch you a premium.
Age and condition of the property. Potential buyers find homes that are well-maintained more appealing. So, the market value of your property can be positively impacted by routine maintenance, modern upgrades, and a tidy, welcoming environment.
Comparable sales (Comps). This analyzes the recent sales prices of homes similar to yours in terms of location, square footage, features, condition, etc. It provides you with a reasonable estimate of the amount that motivated buyers looking for a house like yours in your neighborhood would be happy to pay for it.
Interest rates. The high mortgage interest rates in 2023 slowed down the U.S. real estate industry by making it more difficult for many Americans to become homeowners. House values decrease in tandem with reduced buyer demand.
On the flip side, a thriving housing market that raises property values is closely associated with lower interest rates.
How to Find the Market Value of Your Home
Employ Online Home Valuation Calculators
Many internet tools have been made available recently to help homeowners instantly determine the worth of their properties.
Some popular options include Zillow's Zestimate, Redfin's Estimate, and Realtor.com's Home Value Calculator.
These tools ask you questions about your home and then utilize algorithms to estimate the value of your home based on some of the previously mentioned factors, like the size and location of your property, recent sales in the neighborhood, and property tax information.
While the goal of these calculators is to give homeowners an easy and quick way to figure out the value of their properties, they're not always accurate, and each one uses a different set of data and algorithms, so estimates may differ by several hundred dollars.
Zillow's Zestimate, for example, cautions that its home valuation can be off by 7%+.
Check Comps on Homes Similar to Yours
Did your neighbor down the street who occupies a house with the square footage, floor plan, baths, bedrooms, and other features as yours just sell it for $300,000?
That's probably about how much your own home is worth.
You may find out the sales prices of other nearby properties comparable to yours that have recently sold on real estate marketplaces like Zillow. The more comparable sales you look at, the more accurate you'll be at determining your property's value.
If you intend to sell your house, you can also get a decent sense of how much you can get for it by browsing the listing prices of homes on the market in your neighborhood on the real estate platforms.
Consult a Real Estate Professional
As a homeowner in Pittsburgh, you may find out the market value of your residence with the assistance of HomeBuyers Of Pittsburgh, a respectable cash home-buying firm that's purchased and sold more than 750 homes in the city in the past ten years.
Through our home consultation service, the experienced HomeBuyers team can ascertain the market value of your home, and suggest any renovations or repairs that will increase its worth. All that's needed is a brief 20 to 30-minute home tour.
We'll consider major components like the roof, furnace, electrical system and foundation – plus aesthetic elements like the kitchen, bathrooms, flooring and paint – to determine your home's monetary worth.
You can also get an accurate home valuation from local realtors who have firsthand knowledge of current market conditions and the variables influencing property prices.
If you work with a realtor, they'll provide you with a comparative market analysis (CMA). This report will present you with a value opinion of your house based on prices of homes identical to yours in size, condition, and age that have sold in the past 90 to 180 days, current listings, and market trends specific to your area.
Hire A Professional Appraiser
Appraisers are trained and licensed to offer objective opinions on a property's value.
Due to their excellent property evaluations, financial institutions usually choose an appraiser to provide a report on a home's value as of a particular date prior to approving a mortgage during a property sale.
An appraiser you engage will come to your house and perform a comprehensive inspection and analysis of the property, taking into consideration its size, location, condition, and any modifications or renovations you have made. They'll also analyze real estate market data before appraising your residence using different valuation methods.
While this home valuation method may take longer and is expensive (an average single-family home appraisal costs $500), an appraiser's evaluation can be used for financial and legal purposes.
Once you know the market value of your home, it will help you set a reasonable asking price if you're selling the property. As a seller, if you overprice your house, it can sit on the market for a long time, and if you underprice, you'll be losing money.
Determining home market value also hands you the information you need to confidently negotiate for the best price for your house with buyers who send offers.
HomeBuyers of Pittsburgh: The #1 Professional Home Buyer
Establishing the actual value of your home in the present real estate market can be a time-consuming process. If you find the idea of valuing your house and planning a sale stressful, HomeBuyers of Pittsburgh offers a fast, reliable, and hassle-free approach for valuing property and selling it quickly.
We value and buy homes for cash at fair prices in any condition, so you don't have to worry about appraisals, repairs or real estate agent fees. We have no hidden fees, and you can receive your property's cash payment in as little as 21 days.
Contact us today at 412-444-8914 or info [at] urbanpgh.com for a fast home valuation and stress-free sale of your home. You won't regret it!