How to Determine Market Value of a Home

When buying or selling a home, you often hear the phrase "market value." The market value is merely what someone might pay for your home. People consider several elements when determining the market value of a home. Real estate agents conduct a comparative market analysis (CMA) when determining the value of a home. But you don't need a real estate agent to determine the market value of your home.

Difficulty:

Moderately Easy

Instructions

1. Identify the external characteristics of the home. Size, style, the condition of the home and its curb appeal all factor into determining the market value of a home.

2. List the characteristics of the home's interior. The number and size of the rooms, the quality of the construction, efficiency of the home's heating and cooling systems and condition of the appliances should all be noted.

3. Check into how similar homes in the area are selling. Determine the number of houses for sale versus the number of buyers actively looking for a home. This is "supply and demand" and has a large impact on the market value of a home.

4. Note the demographics of the area. Find out how good the neighborhood is, the rating of the school system and crime statistics for the area. All of these external factors can increase or decrease the market value of a home.

5. Compare the sales price of similar homes in the area. Use homes that have sold in the recent past. Arrive at an average value by looking at homes that have sold for slightly less and slightly more.