If you are considering selling your house, figuring out how much it is worth is crucial. Although real estate agents usually handle this for houses they list on the MLS, what if you’re selling the house yourself, or what if you want to understand what the agent is doing?
Consider these factors:
- Comps: In real estate, comparables, or “comps,” refer to similar properties in the same area that have recently sold. To determine a house’s value, you’ll want to look at the sale price of your comps, taking into account differences in size, age, number of bedrooms and bathrooms, and overall condition. Websites like Zillow and Redfin can provide data on recently sold properties. If there are no comps, other approaches for valuing a property include the cost and income approaches.
- Market conditions: The current state of the real estate market can have a big impact on a house’s value. If it’s a seller’s market, there is high demand and low supply, making it easier to sell a house for a higher price. In a buyer’s market, there is low demand and high supply, so houses are priced lower to attract buyers.
- Property condition: A well-maintained property in good condition will sell for more than a property that needs repairs.
- What someone will pay: Ultimately, the final sale price is determined by what someone is willing to pay. Factors like location, amenities, and overall appeal can affect what someone is willing to pay for a house. But even if everyone thinks something is worth a particular amount, if nobody is willing to pay it, then the house won’t sell!
- Seller’s circumstances: Some sellers may prioritize conveniences like a fast sale or not having to make repairs. These pose challenges for buyers so the house will usually sell for less.
You can also find an estimated price for your house on websites like Zillow, but they use their own formulas which are based on available data and cannot account for things like recent renovations. As such, their estimates should be considered very rough.
If you would like to know what we can pay for your house, feel free to reach out!