What is my home worth? Here are 8 key factors to determine your home value.
Are you a homeowner wondering how much your house is worth? It's a totally normal question to have, especially if you're thinking about selling. There are tons of online tools that claim to give you an estimate of your home's value, like Zillow's Zestimate. But be warned - these kinds of tools can be up to 30% off because they use something called an Automated Valuation Model (AVM) which doesn't always consider all the important factors. That's why we created our own more accurate Home Valuation Tool at DMV Millennial Homes. It uses complex market algorithms and wide-ranging data to give you a more accurate estimate.
But even the best tools aren't perfect. The housing market can change fast, especially in hot areas like Washington, D.C. So if you're planning to sell, it's important to know your home's current value. At DMV Millennial Homes, we're experts at valuing and pricing houses. Here are some of the key factors we consider:
Comparable Sold Properties
Before you even meet with your real estate agent, they've already done a ton of work behind the scenes. One thing they'll do is pull up a list of similar properties to compare with yours. This will give you and your agent an idea of how much your home might sell for on the open market.
Just keep in mind that this isn't a simple comparison. You can't just look up a house with the same square footage on Zillow and expect to sell your property for the same amount. Good real estate agents do in-depth analyses of your house and comparable properties to help you figure out what your home is worth.
Comparing similar properties is a great way to see how the local market is doing. It's also a good way to get a general answer to the question "what is my home worth?" But to really understand the specific value of your property, you and your agent will need to look at more details about your home.
Changing Neighborhood Features
If you're thinking about selling your home, you gotta keep in mind that neighborhoods can change FAST - especially in hot markets like DC. Just a few years can make a huge difference in home values. Depending on the neighborhood, you might see skyrocketing prices or more stable sales.
For example, remember when Amazon announced they were building their HQ2 in the DMV? Suddenly, the National Landing area (which includes parts of Arlington and Alexandria) was all anyone could talk about. People were speculating that real estate prices would go through the roof because of Amazon. That's an extreme example, but it just goes to show that you need to consider all the features of your neighborhood when figuring out how much your home is worth.
To make sure you're on top of things, work with a team of local experts who know the ins and outs of changing neighborhood trends. They'll help you get a better idea of how much your house is really worth.
Market Health
If you're considering investing in real estate, it's worth noting that it's usually a pretty stable market. Unlike stocks that can be super unpredictable, the housing market doesn't usually fluctuate too much. That being said, it's still important to keep an eye on the current state of the real estate market when you're trying to figure out how much your home is worth.
Just keep in mind that sometimes the housing market doesn't follow the same patterns as other economic indicators. For example, it's not uncommon for the number of homes being sold to remain high even when the stock market is doing poorly. In fact, that's what happened at the start of 2020 when COVID-19 hit.
So, just make sure to stay up-to-date on the overall health of the market, as well as whether your local market is mostly made up of buyers or sellers. All of this can have a big impact on your home's value.
Upgrades and Renovations
It's important to make your home feel like your own. Plus, making some updates and renovations can really increase the value of your property. Just make sure to talk to your real estate agent before you start tearing down walls to see what will give you the most return on your investment. When you're walking your agent through the house and telling them about any updates you've made, be sure to let them know about any renovations too. This will help them give you a more accurate assessment of the house's value. If you're trying to up the selling point of your home, ask your agent if they have any suggestions for small renovations or cosmetic updates to make before putting it on the market. They might not always suggest something, but it's worth asking.
When you are selling
In general, more homes tend to sell during the spring and summer than in the fall and winter. This is partly because more people are looking for homes during the warm months, so more people list their homes then too. But it's important to keep in mind that a good real estate team will still be doing plenty of transactions during the fall and winter.
Your agent can help you figure out the best plan for you, taking into account your personal needs and other factors. Some people like to sell their homes in the summer when there might be more buyers and the chance for a bidding war, while others might prefer to sell in the winter when there are fewer homes on the market and less competition. Just depends on what works best for you!
How long your home has been on the market
Did you know that good real estate agents are basically negotiating wizards? They'll use every trick in the book to get the best price for the buyers they represent when it comes to your home. But if your house has been on the market for a while, or if you've taken it off and put it back on, this can be a huge red flag for savvy agents. That's why it's so important to price your home accurately from the start. It's also why "For Sale By Owner" (FSBO) deals can be a disaster for homeowners - you're basically telling buyers that you're at a negotiating disadvantage.
But don't worry, there's a way to "test" the value of your home without jeopardizing your position. If you work with a real estate team that knows how to sell your house off-market, you can try this technique. You and your agent can list the property off-market at a higher price and see if it generates enough interest. If it doesn't, you can always set it live at a lower price.
There is one catch though - due to MLS regulations, this strategy only works if your agent can connect you with buyers without actively promoting the home. Make sure to work with a team that has a big network of motivated homebuyers they can show your place to!
Marketability
If you're trying to sell your home, marketing it properly is key. It's all about highlighting those special features that will make your place stand out to potential buyers and potentially increase its value. There's no one-size-fits-all solution when it comes to figuring out how to market your home, so it's important to talk to your real estate agent about the best way to showcase what makes your home unique. Just keep in mind that the agent you work with can also have a big impact on your home's marketability. Some agents only list your home in the MLS and do an open house, but at DMV Millennial Homes, we go above and beyond with a full marketing plan that includes social media, video content, and traditional real estate marketing strategies.
Buyer Interest
If you're looking to sell your home, you'll want to work with a real estate team that can connect you with buyers who are willing to pay top dollar for your place. That's where we come in. DMV Millennial Homes has a network of over 30,000 buyers who are actively looking for a home. We'll find the perfect match for your house so you can get the best price for it.
It's also important to have accurate expectations for what your home might be worth. That's why we train all of our seller success agents to assess your home's value and come up with a pricing strategy that works for you. Whether you're in Arlington, VA or Washington, DC, we've got the local expertise you need to sell your home quickly and for the most money possible.
Want to learn more about our unique pricing strategy and how it can help you sell your home faster and for more money? Just schedule a free, no-hassle Home Value Consultation with one of our experts and we'll chat!