How to Tell What Your Home Is Worth
The housing market can fluctuate widely. A home that was worth $250,000 one year can be worth $450,000 or $150,000 in the years after. What many homeowners don't understand is that it rarely matters how much money you've put into your home or how good you think it looks. The type of updates or improvements you've made are much more important in valuing your home. For example, a new roof or furnace is going to matter much more than if you've put in fancy, high-end kitchen cabinets. A roof or furnace is a basic necessity, but your cabinets might not be to a buyer's taste, no matter how much they cost. Remember that the buyers determine the market. If no one is buying in your neighborhood, then it doesn't matter how much you paid for your house---it only matters what someone else will pay.
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Instructions
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Use a calculator to evaluate your own investment first. Consider what you paid for the home, then add capital improvements you've made---utilities (furnace or air conditioning), appliances (that you wouldn't take with you if you moved), additions, new roof or hardwood floors. You can consider the cost of a new kitchen, but you must be prepared for the idea that potential buyers might not have your taste and might replace it as soon as they move in.
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Look at other homes. You will want to get the information on every other home that is listed, has been listed or has sold in the last six months to a year in your neighborhood. Keep the list to houses within a quarter- to half-mile, unless you live in a very rural area. You'll want to compare your house to other homes of similar age, style and size. Go to their open houses if you'd like to see the differences and similarities between your house and theirs.
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Go to Zillow.com and pull up expired listings and recently sold information. You can also get this information from your real estate agent, if you have one. Zillow can give you the recently sold and current listings in your area.
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Get an inspection and an appraisal. It will cost around $400 for each, but they will not only give you a very good idea of for how much your house could sell but will give you a great selling angle with a potential buyer. If you have already had the inspection done, there won't be any surprises for buyers, and it's one less thing about which they have to worry.
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Tips & Warnings
One great way to find out what your home is worth is to call a few local real estate agents and ask them to tell you at what price they would list it.
