Download Commodity

Download Article

When planning to sell your home, coming upwardly with the right price can seem like a very difficult process. There is a lot of information to sift through and you might feel a little lost. With some careful investigation and calculations, still, yous can come up upwardly with a good estimate of your property'south marketplace value — or the toll your house tin can be expected to bring — without too much trouble. With this information, y'all can come upwardly with the right price for your house.

  1. 1

    Do an Internet search for recently-sold homes in your area. Some local governments and realty sites publish this information on their websites. Using an online search engine is a skillful get-go step to accept before you lot make any phone calls or visit any offices. That fashion, you lot can get an idea of what data is available without a lot of inconvenience for yourself.[1]

    • Some of the most popular sites for existent estate research are Realtor, Trulia, and Zillow. Start here when searching for information about recent sales or other real estate information for your expanse. Keep in listen that this data isn't always 100% accurate, which is why yous should gather information from multiple sources.

  2. 2

    Contact your local tax cess office. Local governments keep records of contempo holding sales, which are commonly held in the tax assessment function. Contact the office and ask for records of recent sales in your neighborhood or zip code. Run into if they can give you a list with all the details of each property, including selling price, date of auction, square footage, year built, and number of bedrooms and bathrooms. Y'all'll need all of this data to make an educated guess on the market cost for your home.[2]

    • This data has the advantage in that it is existent sales data and is in your local marketplace (existent manor value is based on location), but very seldom is a home exactly like yours sold in the contempo past, so some adjustments will need to be made.

    Advert

  3. 3

    Contact a local real manor agent. Realtors will have plenty of experience in your area and exist aware of recent sales, even if their part didn't brand the auction. Contact the realty office and meet if any agents are willing to talk nigh recent sales. Recollect to get all the necessary data about the auction, including at to the lowest degree the selling toll, date of sale, square footage, yr congenital, and number of bedrooms and bathrooms.[3]

    • It would probably make the Realtor more willing to share information with you if you mention that you're looking for information considering y'all plan on selling your house. When the Realtor sees you every bit a potential client, he may exist more open up with yous.
    • If you do rent a Realtor, he should perform a comparative market analysis. This report covers many data points including comparable sales of other properties and estimates of market place value. If you want more control over the data that you receive, endeavor asking your Realtor to send you the best comparative analysis equally defined past the criteria that you set. For example, since many lenders want comparative analyses based on homes within 1 mile of the property for sale, you can ask the Realtor to limit their search to within one mile of your domicile.

  4. four

    Ask for a property profile from an insurance company. Insurance companies proceed data on real estate sales in a given area. Some volition provide you with a property profile for complimentary, hoping y'all'll purchase insurance from them. The holding contour will contain a list of comparable properties to your own, and the specific aspects of these properties.

    • Not all companies will practise this for free, but y'all might nonetheless be able to obtain a property profile for a fee.

  5. 5

    Look in local newspapers. Town, city, and county newspapers frequently publish information on local holding sales. You tin can scan the real manor section for information on recent sales. Acquit in mind that you might not get all of the data you lot need solely from a newspaper. You'll probably still have to contact a tax assessor or real manor agent for all of the necessary information.[four]

    Advertising

  1. 1

    Brand a spreadsheet on your computer. You'll accept to organize a lot of information once y'all get a listing of contempo sales, and the most efficient way to do this is with a spreadsheet. Make a split up column for all the information about backdrop, including accost, lot size, square footage, home style, year built, garage size, number of bedrooms and bathrooms, status of the holding, and selling price. Start past plugging in your own firm's information, though of form leaving the selling price department blank for now. You lot'll and so plug in other backdrop as you asses the list of recent sales you've caused.[5]

    • If you've never made a spreadsheet earlier, read Make a Spreadsheet in Excel.
    • If y'all're unaware of the square footage of your own home, await at your real estate documents like closing papers. The foursquare footage will exist listed on the appraisement report of your house. You might also be able to observe it in county records, but the appraisal written report volition exist more than accurate.
    • If yous can't notice your home's square footage, you tin get a rough estimate by measuring the outside of the house. In feet, measure the length and width of the firm and multiply these ii numbers. Subtract the garage, enclosed porches, hallways, and closets. This will requite you a larger number than the actual square footage. Yous could get a more accurate estimate by finding the area (length x width, just like with the outside) of each interior room. Then add these numbers together.[6]

  2. 2

    Look for homes that accept sold within the last vi months. When y'all've acquired the necessary data near sales, you accept to start sorting the backdrop. First by rejecting whatsoever sales that occurred over six months ago. The real estate market changes quickly, and sales more than six months old could exist likewise outdated to be useful. Only use older sales if you can't find any information on a more than recent auction.

  3. 3

    Find at least three homes that are virtually like yours. Later finding the most upward to engagement sales that have occurred in your area, you lot can first assessing the information to find comparable backdrop. Remember that yous probably won't notice properties exactly like yours. The aim is but to find properties that are nigh like yours out of the list of sales. Using the post-obit criteria, find comparable properties to get the best idea of what your home volition sell for. Then plug them into your spreadsheet to compare them to your own dwelling house.[7]

    • Lot size.
    • Foursquare footage.
    • Dwelling house style.
    • Number of bedrooms and bathrooms. Besides include whether these are total bathrooms, with a shower and toilet, or half, with merely a toilet.
    • Age.
    • Location.
    • Types of amenities such as patios, decks, puddle, fireplaces, landscaping, property condition, land value, and view.
    • Whether or not there is a finished basement.

  4. four

    Conform the sales price if necessary. This is where a good bargain of interpretation comes in. Since it'due south unlikely that all of the homes you lot'll put on your list will exist identical to yours, you'll have to make them fit yours so adjust the sales price accordingly. Adjusting the market price is a hard process. It would help if y'all consulted a Realtor or someone else who is experienced in the existent estate market place. She volition know the value of certain specifications for backdrop.

    • For example, say y'all notice a house that is exactly like yours that sold for $200,000, except it has two bathrooms and yours has one. Endeavour to gauge what information technology would have sold for without that extra bath. A bathroom tin can add over $10,000 to the market price. You lot therefore estimate that the home would have sold for $190,000 if it had the exact specifications of your house.[8]
    • A Realtor volition exist able to provide the comparative market analysis and has experience in making the estimates and adjustments based on differences. Brand sure that you consult an experienced Realtor. When comparison Realtors, look at how both how many sales they completed too as the prices of the houses they sell (and whether they tend to sell in a higher place or below market price).

  5. 5

    Apply the adjusted sales prices of comparable prices to approximate your home's market value. Once yous've adjusted the sales price of comparable homes, you should be able to make an educated guess on your habitation's market cost. For example, if you chose iv homes and they had sales prices of $240,000, $248,000, $255,000, and $257,000, you can make a proficient estimate that your firm will sell somewhere betwixt $240,000 and $257,000.[9]

    • When coming upward with adapted sales prices, only use the final selling price of a domicile. The request price of a home doesn't tell you anything; sellers can enquire annihilation they desire, but it doesn't mean they'll get it. Use only prices that houses actually sold for. This will tell you lot the market place value of the area yous live in.

  6. 6

    Use the market value to find your asking toll. Afterward you lot find the expected market price of your dwelling, you should apply this number as your asking price. Do not try to add too much money to this number because an overpriced home will accept longer to sell. If yous plan on putting your home on the market, talk this over with your Realtor to observe the ideal asking price.

    Advertisement

  1. 1

    Figure out the price of comparable homes per foursquare pes. If adjusting the prices of comparable properties seems too imprecise, you lot could also effigy out how much comparable homes sold for based on square footage. This will give you simply a rough thought of the marketplace value. Yous volition need to practise other methods to get a more verbal figure.

    • Find four nearby backdrop that are like to yours. Add together their foursquare footage together and then separately add together up the prices that they sold for.
    • Split up the full price that they sold for by the total square footage. This will give you a rough idea of how much money per square footage your firm will go for.
    • Multiply this price by the number of square anxiety in your home. This will give you lot a very rough idea of what your business firm is worth.

  2. 2

    Compute the price it would have to replace your habitation. Another technique for estimating your property value is to add up all the costs necessary for completely rebuilding your habitation every bit information technology is. Notice out how much it would take to construct every part of your dwelling and property. This will probably entail talking to contractors and getting price quotes. When you've done and then, you can add upwardly the estimates to come to a concluding estimate of your habitation'south market price.

    • Beware that this method, while information technology is used, tends to be inaccurate. It just works for newly built homes or homes that have recently been completely renovated. The toll comparison method is usually much more authentic because it pays attending to electric current trends in the housing market.

  3. 3

    Rent an appraiser. Sometimes the amount of data you have to become through makes it very difficult to estimate your dwelling's market value. In this case, you tin hire a professional person appraiser. He will do all the hard work and produce a practiced estimate of your home's market place price.

    • If yous get the holding appraised for an FHA loan, the appraisement will remain in effect for six months. This means that if you disagree with the value that the house is appraised for, you cannot become it changed. If you lot obtained a different appraisal originally, however, y'all may exist able to challenge this appraisal past presenting the first 1.

    Advert

Add New Question

  • Question

    How tin can you properly assess your property value in regards to location?

    Carla Toebe

    Carla Toebe is a licensed Real Estate Banker in Richland, Washington. She has been an active real manor banker since 2005, and founded the real estate agency CT Realty LLC in 2013. She graduated from Washington Country University with a BA in Business concern Administration and Management Information Systems.

    Carla Toebe

    Real Manor Broker

    Proficient Answer

    The county assessor office has a state value that takes location into consideration. Y'all can also determine what is nearby such every bit a highway, railroad tracks, commercial backdrop, or if information technology has a river view, mountainous view, or park across the street. Compare other similar properties. If they are lacking in the proficient things then add together value to their sale price. If they have like issues, there is no demand to alter anything. If simply yours has these issues, then you need to deduct from the other property auction price. You should look at landscaping difference, distance to local amenities such as schools, whether information technology is on a busy street, on a corner lot, whether it has fencing around the property, and any other features on the lot. Determine the values to add or subtract. For example if one has a view and i does not, y'all can add or deduct $5,000 to the sale price.

  • Question

    What are the best steps to property investment?

    Carla Toebe

    Carla Toebe is a licensed Real Estate Banker in Richland, Washington. She has been an active existent estate broker since 2005, and founded the real estate agency CT Realty LLC in 2013. She graduated from Washington State University with a BA in Business concern Administration and Management Information Systems.

    Carla Toebe

    Real Manor Broker

    Expert Answer

    First decide what your brusque term and long term objectives are. Practise yous want to make money quickly and reinvest? Do you want to make money in the long term? Practise you want to make regular income? How many properties do yous want to own? What type of properties do you want to own? How active practice you lot desire to exist equally an investor in managing or selling your investments? Then plan your budget. Make sure yous take all your financing in place and include the lender in your investment strategy. Have a good accountant in place and a good existent estate chaser. Hire a Realtor who specializes in working with investors who can provide the listings to you that meet your criteria. Get on the MLS automatics then when something comes on that meets your criteria gets listed, you lot take first crack at information technology before it syndicates everywhere else. Brand sure you have enough money to pay any mortgage, at least vi months of mortgage payments in the bank in example y'all take to carry that mortgage before a resale or rental. Reevaluate objectives and cheque your portfolio periodically.

Ask a Question

200 characters left

Include your e-mail address to get a message when this question is answered.

Submit

Advertising

  • Remember that even if your calculations are spot on, these methods are only estimates. The simply manner to know what your house will actually sell for is to put it on the market place.

Advertising

References

About This Article

Thanks to all authors for creating a folio that has been read 82,891 times.

Did this article help you?