Over the past decade or so, the entire U.S. has experienced significant movement in the real estate arena. For some, this has meant that the value of the home they purchased years ago has increased nicely, and for others it’s meant owing more on their mortgage than the property is currently worth – in other words, they’re upside down.
Unlike the stock market, where share prices move up and down in a mere instant, the value of real estate moves a bit slower. But, while there are many different websites out there that will provide you with a rough estimate of what your home is currently worth, oftentimes these can be far off the mark.
So, how do you find out what your home is really worth?
There is one method of determining a home’s value that has been used long before the Internet was even in existence. This entails taking a look at comparable properties (or comps) that have sold within the past six months and that are located in your neighborhood or vicinity.
Typically, when using the comp method, it is best to use the final sale price of three comparable properties, and then add or subtract various features that each has or does not have in relation to your home.
For example, if the comps you are using each have 2 bathrooms, but your home has an additional half bath, then this would be taken into consideration. (Note that each of the comparable properties should not have more than a 200-square foot difference in overall size).
Because getting the detailed information on recently sold properties can be somewhat difficult, it is usually best to work with a licensed real estate agent who has access to various data resources.
If you’re considering making a move in the near future and you would like to know how much your current home is worth, give us a call. We will provide you with the information that you need, along with making the entire process of selling your home easier.
