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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:

1. 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:..

2. 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.
3. Similar Lot Sizes – Other houses you are looking at should be within 2,500 square feet in lot size.
4. Similar Ages – The houses you are comparing should
   have been built within 5 years of the construction date as your home.
5. 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.
6. 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:

7. 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.
8. 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
9. 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.
10. 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.
11. 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.
12. 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.

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Should You Sell Your Home To Investors

I called the home seller to introduce myself as well as confirm the time and location. She didn’t seem overly excited to sell her home like most people are. I didn’t think much of it.

She needed a second witness to sign off on the General Warranty Deed, so I provided the witness.

We all met bright and early Friday morning at a local coffee shop.

The seller signed the closing documents quickly. Barely glancing at the paperwork.

Was she in a hurry to go somewhere else?

Not really.

We finished signing and I packed up my notary stamp and journal, my box of blue pens, and stuffed the signed documents into the FedEx envelope to ship back to the title company.

When I put my stuff in the car and turned around, she was still sitting there.

I decided to go back inside. I was tempted to get a cup of Honey Citrus Mint Tea. As I walked toward the door, the seller was coming toward me.

I realized she wanted to ask me something.

“What am I supposed to do with the keys?” she asked.

The title company hadn’t given me any specific instructions about collecting anything from her.

So, we sat back down at a table and tried calling a few numbers to see if we could get somebody on the line who could tell her what to do with them.

She Sold Her Home Cheap To An Investor

Long story short, she had sold her house to an investor in another county. They had told her to leave the keys with the title company at signing. But the title company was a good four to five-hour drive away.

She got ahold of one of her contacts before I did. I could only hear one side of the conversation, but it sounded like they wanted her to leave the keys under the rug or something.

In the end, they just told her to hang on to the keys till the buyer got ahold of her to pick them up.

It was a strange situation. Normally, the keys are exchanged at signing. Either the seller leaves them at the office for the buyers to pick up. Sometimes the title company will give me keys to hand the buyers after the signing is complete and the lender has approved funding authorization.

But I’d never had something quite like this happen. And it didn’t make much sense until she explained what was going on.

Investors Make ‘Cash’ Offers For Less Than Your Home Is Worth

An investor had called her, making her a cash offer. If you own a home, you’ve probably received calls from them offering to buy your home for cash. Typically at about 70% of what it’s worth.

They make it sound like it’s better than using a realtor because you don’t have to pay a realtor or closing fees. But investors usually pay much less than your home is worth anyway. So, it doesn’t really make much sense to me. Unless you just want to sell fast and don’t have to deal with buyers.

But in such a crazy hot market like we’re in, it doesn’t make sense to sell your home to the first person who makes you an offer. I’ve been to several signings recently where I’ve seen home sellers take the first offer they get.

An investor had offered the homeowner what they thought it might be worth and the seller accepted. Without checking to see what it was really worth, or even taking the time to see if someone else might make them a better offer.

It’s My House And I Can Do What I Want To…

Which I think is crazy, but hey, it’s their house and they can sell it for whatever they want. Right?

But even if you don’t want to go the usual route of showings and inspections, at least talk to a couple of different investors to get several quotes. Or talk to a real estate agent who can tell you know if the price you’re getting makes sense.

Now, in total transparency, I am a real estate agent with Coldwell Banker Realty, and I work with a lot of investors. So, I see both sides of the coin and see advantages and disadvantages either way.

Explore Your Home Selling Options

All I’m saying is, explore your options to get as much money from your home as possible in the time that you have to work with.

If you’re in a hurry and need to sell fast, then a quick cash offer may make sense.

Get Several Offers For Your Home… Not Just One

But here’s an idea for you. This is what I would do if I wanted to maximize the amount of money I made from the sale of my home.

First, get several cash offers for the sale of my home, and see how long they’ll give me to decide and take the offer. It might be seven days or a month. Then market the home and see if you can find other buyers that were willing to pay more within that time frame.

If I didn’t get a better offer then I would take the cash offer. Which is nice because you have a guaranteed backup plan.

How To Get Top Dollar For Your Home With A Guaranteed Sale

That’s exactly what I do for my clients who want to sell their homes. I work with a company that gives you a quick cash offer for the sale of your home. No showings, no stress, no worries. They’ll buy it quick and easy.

And they give you up to 45 days to find someone else that beats the price they are offering for your home. If someone else does make you a better offer, you made more money for your home. If you don’t get any other offers, then at least you know you have a guaranteed buyer willing to pay cash for your house.

On top of that, they’ll also give you a leaseback so that you can continue living in your own home even after you sell it to them, which is a nice option if you need while waiting to close on the new home that you are buying.

Selling Your Home In Florida?

If you want to sell your home in Florida, I can help you…

• get a guaranteed cash offer,
• upgrade your home with any renovations needed with no money out of pocket,
• market your home far and wide for a better offer, and
• extra time to live in your home even after you sell it

If you’re interested in listing your home for sale in Florida, inquire about your options by filling out the form below.