12 Rules To Know How Much My House Is Worth
If you want to sell your house fast for top dollar, make sure you are pricing your home correctly.
- If you price it too high for your market, it will take longer to sell (or might not sell at all).
- If you price your house too low, you’ll end up leaving money on the table.
So, how do you know where the sweet spot is for pricing your property?
You do what any good real estate agent would do for you.
How Do I Know How Much My House Is Worth?
You create a CMA (comparable market analysis) so you understand what other similar (similar is the keyword here) houses are selling for in your area.
Just because your neighbor Joe sold his property for half a million doesn’t mean your house will sell for that much.
Your house may be less, or it may be worth more.
So, what factors should you consider when comparing your house to other similar properties?
Don’t worry, I’ve got you covered.
12 Easy Rules of Thumb To Know How Much Your House Is Worth
Here are some easy rules of thumb for comparing properties:
- You start by comparing your house to properties that were sold very recently, preferably within the last few weeks, to compare current prices on the market.
This is important, but later we’ll explain how to compare your house if there aren’t any recent sales similar to your home.
Find Similar Houses To Compare To Your Home
Then, only compare properties which are:..
- Similar Square Footage as your house – Other houses you are looking at should be within 200 sq ft. So, if your home is 1200 square feet, you want to look at other homes between 1000 – 1400 sqare feet.
- Similar Lot Sizes – Other houses you are looking at should be within 2,500 square feet in lot size.
- Similar Ages – The houses you are comparing should
have been built within 5 years of the construction date as your home.
- Similar Neighborhoods Or Same General Area – The price of houses can fluctuate based on the neighborhood they are in, so it’s best not to leave your subdivision And DON’T cross major roads.
- Similar Stories – Don’t compare your first-story house to a two-story house
But, what do you do if those houses have a different number of rooms or amenities?
How Much Should You Adjust For Differences In Your House?
Use these general rules of thumbs below:
- Different Number of Bedrooms – If your house has more bedrooms than the property you are comparing it to, you can add $10K-25k per bedroom. If your home has less, you’ll subtract the amount.
- Different Number of Bathrooms – Again, you’ll add or subtract $10k for each bathroom your house has compared to the other you are comparing it to
- Pool – If your house has a pool and the other does not, you can ad $10k-15k to the value of your house. If your house doesn’t have a pool but the other does, you’ll subtract that amount from your price.
- Garage – Again, if your house has a garage but the comparable does not, you’ll add $10K to the value of your house. And of course, subtract it if yours does not, and the other does have a garage.
- Carport – Same thing with a carport, only this time you’ll only add or subtract $5K dollars for the difference between your house and the comparable.
- Traffic – How is the traffic in your area compare to the other house you are comparing yours too? If traffic is worse/dangerous or out of the way, then subtract $10K from the value of your home. If it’s better, easier, more convenient, then add $10K
That should give you a general idea of what your house is worth compared to other similar homes that have sold in your area.
What If There Aren’t Any Recent Homes To Compare To Your House?
But, what if you can’t find a comparable property that has sold within the last 3 months?
Go back in increments of 3 months, 3, 6, 9, 12… until you find a comparable property that doesn’t violate the above rules.
When comping you can go back up to 2 years and adjust for inflation around 3.5% year over year for comps
So, there you have it, my friends.
12 quick, down-and-dirty tips on how to compare your house to others in your area so you have a general idea of what your house is worth.
Hope that helps!
Of course, there are other factors at play, like upgrades and renovations and things that aren’t easily compared to other homes.
This is where your local real estate agent will be able to provide extra insight and expertise since they are out looking at homes on a daily basis…
Which is where I can come in and help you figure out that sweet spot of what your home is worth so that you can sell your house quickly while still getting top dollar for it. No obligations or commitments to selling your home…
But of course, if you do decide to sell it, I’ll be happy to help you get your home ready to sell, create a solid marketing plan to get your house in front of as many people as possible, negotiate the best deal possible for you, and walk you through the inspections and appraisals so you make it to closing.
And then of course make sure you understand all the closing documents you are signing because that’s where I shine.
I’ve done over 850 closings over the past few years working in the real estate industry with title companies and law firms.
Want More Help To Figure Out What Your Home Is Worth?
So, if you have a house in Florida that you’re thinking about selling, shoot me over the property address and I’ll be happy to run some numbers for you.
Even if the property isn’t in Florida, I can still help you crunch the numbers. And then if you decide that you want to sell it, I can recommend a local real estate agent in your area who can help you get it ready, market it, and walk you through to closing.
David, What Is My House Worth?
Fill out the form below with the address of your property, so David can take a look and crunch some numbers for you to understand what your house is worth.