KEY FACTORS THAT HELP DETERMINE THE VALUE OF YOUR HOME

• One of the more complex issues that many homeowners encounter is trying to determine the value of their home. One of the reasons that this is so tricky is because the value never stays the same for any length of time. What your home was valued at last spring isn’t necessarily going to be the same the following summer.

• It’s wise to keep an eye on a couple of key factors to help you determine the current value of your home. The concept of ‘it’s worth what someone will pay’ is true to an extent, but there is more to the story.

The Marketplace• The current real estate market will always be one of the primary, if not ‘the’

primary factor that determines the value of your home. Basically, if other homes in your area with similar stats to yours are selling for around $200,000 then your house will likely be valued at around $200,000.

• If a house around the corner from you that’s the same square footage, same age and has most of the same features sells for $200,000, you will have a hard time getting $250,000 or more for your house. Obviously, there are upgrades and other considerations to take into account, but for the most part, the real estate market will determine the current value of your home. A lot of times, the market value of a home is described as the price a willing seller would sell the home and a willing buyer would purchase it, if neither party were under any pressure.

• The importance of the real estate market in determining the value of your home is why putting off that desire to sell ‘until next year’ or some other time might not always be the best idea. If there is a shift in the market in that time, you may end up with a home that’s valued at less than it is right now. The reverse is also true, but if the market is favorable when you want to sell, it makes sense to take advantage of it.

• Of course, there are certain elements within the marketplace that will help to ensure your home is valued as high as possible. The precise location of your home is one thing that will determine exactly how much you can get, as is the condition of the outside and inside of the house when you are having showings. Obviously the location is out of your hands, but anything you can do to help boost your home to the top of the market price range, would be well within your interests to do.

Property Taxes• The property taxes that you pay on your home are another way to help determine its value.

This method isn’t always accurate, as tax valuations have a tendency to fluctuate, but it can act as a valuable comparison to what the market indicates and any other methods you might use.

• Basically, to figure out the value of your home with this method, you must find out what your tax base is, then multiply that number by your annual property tax amount. The tax base number may be located on your statement, or you can ask your municipality what figure they use.

• If you are trying to determine the value in order to put the house on the market, use the property tax number as a guide, then let your realtor go through the process of analyzing the marketplace. Don’t forget to make note of how long it takes for the houses in your area and similar to yours to sell, too. Sometimes, ther average may be six months to a year, which could alter your projections about the value and your ability to sell.

Appraisers• If you really want to get the most

accurate figure available, paying for a professional appraisal of your home is probably the best way to go. An appraiser will go from room to room and give you a detailed breakdown of how your home compares to other homes in your area.

• It will cost you at least a few hundred dollars, but you’ll also have a written appraisal from a professional in case there is any discrepancy later. Showing the appraisal figure to prospective buyers makes your price seem like it’s right on the money.