Selling Your Home
What is My Home Worth?
What Your Home is Really Worth (and what it is not worth).
What your home is really worth can be a mystery, but knowing what determines the value and what doesn’t can take the guesswork out of an otherwise confusing task. While there are several ways to estimate your home's value, the real worth lies in what the buyer is willing to pay for it. Related, we clear up some common home valuation misnomers further below.
Establishing Your Home's Worth
To accurately estimate your real home value, a REALTOR® will do a CMA (Comparative Market Analysis) that will take into account local data, including similar home sales within a recent time period, as well as vast knowledge of the current market. An experienced REALTOR® will know how to price your home to encourage interest and avoid an overpriced home that becomes a stale listing from remaining too long on the market.
What Your Home Is Not Worth
- What you need to sell for. This may seem like an obvious point, however many buyers focus too heavily on what they feel they need to get from their home sale in order to move ahead with their lives.
- Your mortgage balance. While your mortgage balance is an important number to be aware of in the planning of selling your home, it is not a determining factor in what your home is currently worth.
- Original cost of purchase. Your home may be worth more or less that what you originally paid for your home, regardless of when you purchased it.