What is the True Value of Your Home? A Guide for Sellers, Buyers, and Homeowners

When it comes to checking your savings or tracking your stock investments, getting a number is a breeze. But figuring out how much your home is worth? That’s a whole different ball game. Whether you’re selling, buying, or just curious, knowing the value of your home can have a big impact on your financial decisions. Let's break it down in a way that makes sense and keeps things exciting!

Why Knowing Your Home’s Value Matters

As a seller, pricing your home just right is crucial. Price it too high? It might linger on the market like leftovers in the fridge. Too low? You might leave money on the table – and no one wants that! For buyers, understanding the home's worth means you're making a competitive offer without overpaying.

Even if you’re not ready to make a move yet, being in the know about your home’s value can be super helpful. By keeping tabs on it, you’ll know exactly when it’s time to take advantage of market trends and make a move that benefits you the most.

The great news? A qualified real estate agent can help you determine your home’s true market value – and they’ll do it for free! Of course in hope of offering enough value to gain your trust and work for you and do the best job possible to sell your home.

The Three Types of Home Values: What You Need to Know

When it comes to buying or selling a home, you’ll hear terms like appraised value, assessed value, and true market value. Here’s how each one works, and why it matters to you.

Appraised Value

A professional appraiser determines this value, usually when a buyer is securing a mortgage. The lender requires it to make sure they’re not lending more than the property is worth. Imagine you agree to sell your house for $450,000, but the appraiser says it’s only worth $400,000 – the lender won’t give the buyer more than the appraised amount!

Appraisers look at things like the home’s location, square footage, condition, and recent sales of similar homes. They’re like the referee of home values – neutral, fair, and making sure no one’s overpaying.

Assessed Value

This is the value your local government uses to calculate property taxes. A municipal assessor looks at factors like your home’s size, age, and improvements to determine this number. They usually don’t inspect the inside, so their assessment is more like a rough estimate.

Your assessed value can directly affect how much you pay in taxes. Lower assessed value? Lower taxes! And if you think it’s too high, many homeowners successfully appeal to get their taxes reduced. (P.S. We’re happy to help you with that!)

True Market Value

Now here’s where the magic happens. True market value is what a buyer is willing to pay for your home – and no one knows this better than your real estate agent. They’ve got their finger on the pulse of the market and know exactly what buyers want, whether it’s an open-concept kitchen or a cozy backyard.

As a seller, knowing this value helps you set the perfect price. And if you're a buyer, it tells you what a fair offer looks like in today’s market.

Can You Trust Online Home Value Calculators?

If you’ve ever checked out the online home value calculators, you may have seen an estimate of your home’s worth, or had an agent call you back requesting an appointment. But here’s the thing – it’s just that: an estimate. These algorithms look at things like public records, market trends, and user-submitted data to come up with a number. It’s a good starting point, but it’s far from perfect.

It's always recommended you get get a Comparative Market Analysis (CMA) from a real estate agent to understand your home’s true value. That’s because agents know your local market in a way no algorithm ever could. They understand the unique features of your neighborhood and the specific preferences of buyers in your area.

How a Real Estate Agent Determines Your Home’s True Market Value

So, how exactly does a real estate agent figure out what your home is worth? By doing a Comparative Market Analysis (CMA). This process compares your home to similar properties in your area and takes into account several factors, including:

• Neighborhood Sales: Your agent will check out recent sales of homes like yours.
• Curb Appeal: First impressions matter! The exterior condition and appeal of your home play a role.
• Interior Features: Square footage, bedrooms, bathrooms, and other amenities all influence your home’s value.
• Age of the Home: Whether your home is a modern marvel or a vintage classic affects its price.
• Style: Buyers in your area may pay extra for a particular architectural style that’s trending.
• Market Trends: Your agent knows what buyers are currently paying for homes like yours.
• Location: Safety, schools, and nearby amenities are huge factors in a home’s value.

An online calculator simply can’t account for all these things. Only a real estate professional with local experience can nail down the real value.

Get Expert Help, Every Step of the Way

Whether you’re looking to sell or buy, your real estate agent is your best resource for understanding the true value of a property. Sellers can price their homes confidently, and buyers can make sure their offer is fair. Plus, your agent can set up a personalized home search, so you’re always in the loop about new listings that match your criteria.

Curious About Your Home’s Value? Let’s Talk!

If you're wondering what your home is really worth, we’re here to help. Request a free, no-obligation Comparative Market Analysis today and get an accurate picture of your home’s true market value. It’s quick, easy, and could be your first step toward making your next big move!