Your home’s value is an important factor when it’s time to put your house on the market. The amount that your home is worth drives how much you can ask for the property as well as what type of buyers you’ll attract. While you’ll likely hire a realtor to list your home and to host open houses, they should also be a great source of information throughout the selling process.
Here are 4 questions to ask your realtor about home value.
1. What Influences Home Value?
There are all sorts of factors that have an impact on your home’s value. If your home has been sold numerous times, the historical prices play a role in valuing your home now. For example, if your home has sold for $200,000, $230,000, and $225,000, a reasonable starting price would be around $215,000 or so.
While past sales matter, the neighborhood that your home is in has quantifiable and qualitative impacts on the value and appeal of your home. A home that’s located near a top notch school system is likely to be more valuable. Crime rates and the surrounding home prices will also impact your home’s value.
Other factors to keep in mind when valuing your home include:
- Nearby accommodations
- Size and appeal
- Age and condition
Be sure to discuss these factors with your realtor when setting a listing price for your home.
2. How Does My Home Value Compare to Other Homes?
Before listing your home, you’ll want to hire a professional appraiser who can determine how much your home is worth. Not only do appraisers look at the physical shape of the home and the surrounding property, they also consider the local market. The region, city, and neighborhood that your home is located in have an impact on its value.
An appraiser will also look at comparable properties, which is where you can see how your home compares to others on the market. Comparable properties include listings, sales, vacancies, depreciation, and cost of similar homes in the same market.
If you’re curious how your home’s value compares to others, looking at the comparable properties section of the appraisal report will provide all of the details you need.
3. Can I Increase My Home’s Value?
If your home’s value is less than what you expected, there are all sorts of renovations and upgrades you can do inside and out to give the number a boost. But, before dishing out thousands of dollars, it’s important to make renovations that will have a high return on investment. For example, it’s relatively inexpensive to apply a fresh coat of paint throughout the house. This boosts the appeal of the home and ups the value to cover the cost.
On the other hand, you don’t want to go through the tedious task of knocking out a wall or installing an entire new bathroom. For the most part, minor projects can make a huge difference in not only the look of your home, but it’s value as well.
Be sure to discuss renovation and upgrade projects with your realtor. They have been in the business for years and know which projects are worthwhile and which ones won’t be as beneficial. Some smaller projects to consider include:
- New appliances
- New carpet
- Minor bathroom and kitchen updates
- A new sliding glass door
- New/repaired windows
By taking on these projects before you list, your home will have more appeal to prospective buyers while boosting the home value to ensure you get the highest purchase price possible.
4. Is Now the Right Time to Sell?
While not a question directly about your home’s value, you want to ensure that you’re listing your home in a time where the marketing is booming and homes in your area are selling fast. You don’t want to list your home during a sales slump, only to have it sit on the market for months and months, leaving you paying potentially two mortgages.
Discuss the market with your realtor. Look at how quickly homes in your area are selling. If you’ve noticed for sale signs go up and come down relatively fast, odds are buyers are interested in the local region and are likely to consider your home.
Timing is everything when selling your home. You want to list during the warmer months when your home looks its best and the weather is much more cooperative. Talk with your realtor about the best time to list your home and whether or not you should wait or list immediately.
Understanding home value can make the process of selling your home much easier. Be sure to ask your realtor these 4 questions before putting your home on the market.
Have you ever bought or sold a home? If so, describe the process and share your experience in the section below.