Have you wondered, 'How much is my Halton & Hamilton home worth?'… I’m sure most home owners in Halton & Hamilton have thought about it at one point in time. So what is the best way to put a price on it?
If you are you wondering "how much is my Halton & Hamilton house worth?", I have two answers for you….
First, we have to understand what VALUE means in real estate. The textbook definition of a fair market value of a home is defines as follows:
“Fair market value (FMV) is an estimate of the market value of a property, based on what a knowledgeable, willing, and unpressured buyer would probably pay to a knowledgeable, willing, and unpressured seller in the market.”
Now, if you don't really need to move, it is worth whatever you say it is. If you think, "I wouldn't sell this house for less than $500,000," then it’s worth that much to you. But if you need to sell it, though, what it is worth to you is irrelevant.
Market value is the only relevant value once you are ready to sell or refinance. As we stated before, the value is decided by what a buyer is willing to pay for your home. They don't care what you spent renovating the house, or what you originally paid. Spend $50,000 adding a pool, and they may only pay $20,000 more for the home, or maybe it will be worth $40,000. Real estate is worth what the market says it is worth.
How Much Is My House Worth - Part One
To estimate the market value of your home, you need to use "comparables." This is how local professional Realtors® and appraisers do it. Typically they will find at least three of the most similar homes nearby that have sold within the last while (how far back they will go will depend on how fast your market is moving and what type of home you have.) then they will use these are their comparables. This information is typically stored at your local government offices and can be accessed by going directly there. Your best bet is to work with a local Halton & Hamilton real estate agent who knows your area and has access to the multiple listing service (MLS ®). They can get the sales prices, terms of sale, description of the property, and other information you would need to compare.
They more than likely will take the first comparable, compare the selling price, and review the description item by item. Add from the sales price of the comparable for each thing it doesn't have what your home has, and subtract for each thing it has that your subject home does have. This may not make sense at first, but once your agent goes over it with you it should become more clear.
For example, if your home has a second bathroom, and the comparable doesn't, then you would add the value of the bathroom to the sales price of the comparable. If the comparable home has a paved driveway, and yours doesn't, take the value away. Your agent will know the value of what these additions or subtractions will be worth in market value. If you are doing this on your own, it may be a bit awkward at first. Keep in mind a $50,000 renovation in one neighbourhood in Halton & Hamilton may be worth more than in another.
Basically they will be rectifying the differences, to see what the comparable home WOULD have sold for if it was just like yours. If a comparable sold for $442,000, with one less bathroom than your home, and a bathroom is worth $15,000 in your area then you most likely ADD $15,000 for the bathroom it doesn't have. Subtract, say $5,000, for the paved driveway it does have, that your home doesn't have. $442,000 plus $15,000, minus $5,000 gives you a comparable sales price of $452,000.
Your agent will do this with each comparable in your neighbourhood, then average the three comparable prices. If, for example, the three comparables now have adjusted sales prices of $452,000, $462,000, and $449,000, add the three figures and divide by three. The indicated value of your home is $454,300. This is about what it should sell for. (Pending there aren’t any other major differences in value.)
How Much Is My House Worth - Part Two
An appraisal is an inexact science. If you can only find houses sold over a year ago, you will need to estimate appreciation in the area, and add that. If one sold with seller financing, you have to adjust for how this affected the price. These complications make it tough to appraise your own home, so what if you need help?
You can pay for a professional appraisal. You will want to work with a local professional appraiser who knows your neighbourhoods and who knows the local market. Be sure to tell the appraiser about anything he or she might miss, like a newer roof, or specially imported tiles etc.
What about online services that tell you what your house is worth? They don't have enough access to sold prices of homes around the country to have a program figure the value of your house. Instead, they usually just take your basic information, e-mail address, and phone number, and sell this "lead" to a real estate agent that will contact you.
Your best bet is to find a local Halton & Hamilton Realtor® who knows the area and the market to help you find out how much your house worth. You can find a trusted agent by looking online, asking friends and family for any referrals, or work with an agent you already know and trust. If you are looking to get a better idea of what your home is worth, ask if he or she can do a "market analysis" of your home’s value.
If you are thinking about selling your home in Halton & Hamilton, you can request a complimentary market analysis of your home today by visiting:
Or call us today to discuss your needs.
If you would like to see the latest Halton & Hamilton homes for sale or would like a personal tour of homes please visit www.ThePremierHomeGroup.com
We hope this information was helpful to all of the readers of our blog. There are many more great articles to come! Be sure to share with your friends and family!
The Premier Home Group
Ryan Smith & Lindsay Russell
Keller Williams Edge Realty, Brokerage
Not sure where to start? Here are 3 ways we can help:
CLICK HERE TO FIND OUT HOW MUCH YOUR HOME IS WORTH
CLICK HERE TO GET HOMES SENT TO YOUR INBOX DAILY
CLICK HERE TO GET INSTANT UPDATES WHEN YOUR NEIGHBOURS ARE SELLING