Determining Your Home’s Value

Three Methods for Determining Your Home’s Market Value

By Mark J. Donovan

Determining and listing your house for the correct price is critical for selling your home quickly. If you improperly determine your home’s value and list it too high you may never sell your home, even when you eventually smarten up and drop the price. If, on the other hand, you list your home too low coming out of the shoot you may leave money on the table.
Thus correctly determining your home’s value is critical before placing your house on the market. Fortunately calculating your home’s value is not that complicated to do.Use Local Real Estate Agents to Determine Your Home’s ValueIt starts with doing a competitive market analysis (CMA) on your home by comparing it with other like properties that have recently sold and ones that are currently on the market.

Real estate agents can do this work for you, with no commitment to actually use them to sell your home. They’ll hate for me saying this, but it’s a fact. Doing a competitive market analysis on your home is a free service that they provide to win your business. If you’re smart you’ll get three or four real estate agents to do a market value of your home and provide you with a target home value to list it at.

Its important to keep in mind that it doesn’t matter how much you’ve personally put in the home when determining your home’s value. Prospective buyers don’t care. They are simply going to compare the price of your home and its amenities to other like homes on the market. Trying to recoup your home improvement investments in a falling housing market is a fools errand. Before listing your house for sale in a down or falling housing market you need to come to grips with the fact that you may very well not recover your total investment in the home. If you don’t accept this possibility up front you’ll never sell it. Determining your home's value.

Prospective buyers will only pay what they think is fair market value. The good news is, however, it only takes one buyer to sell your home.

Pay for a House Appraisal to Determine Your Home’s Value

A more expensive alternative to getting a free competitive market analysis from a real estate agent is to hire a house appraiser. They’ll give you a price that may be a bit closer to reality to the actual selling price. In addition, they’ll most likely determine your home’s value more in line with a buyer’s mortgage lender appraiser. If a buyer’s mortgage lender’s appraiser feels the buyers are purchasing a home at too high of a price, you may have only one of two miserable choices; either lower your sale price to the bank appraiser’s value or walk away from the deal.

So, again, it is extremely important to list your house for sale at a fair market price if you ever expect to sign a Purchase and Sales agreement on it and have a bank provide the buyers with a mortgage.

New Home Construction Bid Sheet

Look at Local Tax Assessments to Determine Your Home’s Value

The last way to determine your home’s value is to compare the town’s assessed value of your home to other similar homes that have sold recently in your town. With this method you can easily do a ratio analysis to determine a fair list price for your home.

For help on building a home addition, see’s Home Addition Bid Sheets. Our Home Addition Bid Sheets provide you with the knowledge and information on how to plan a home addition project, and what to look for when hiring contractors. They also include detailed cost breakdown tables and spreadsheets for estimating your own new home addition building costs.

Related Information

Free Home Addition Price Quotes with No Obligation!

Fill out our 3-5 minute quick and easy form, and receive a free price quote on a house addition from one of our prescreened and licensed home addition contractors. This process is free and there is no obligation to continue once you receive your house addition price estimate.