First, though, there are a few misconceptions about home value that I would like to clear up:
- Home value is not based on what you want or need to pay off your loan amount.
- Home value is not based on what your neighbors think you should get for your home. After all, neighbors are biased.
- Your tax assessed value does not reflect market value. Tax assessed values can be off by as much as 20%.
- The appraised value is not the same as market value. If you have an appraisal that is a year old, it is based on outdated information.
- Home value is different from your insurance value. Insurance companies insure the house for the rebuilding or replacement cost, which is much higher than market value.
- Sites like Zillow cannot determine home value with just a computer algorithm.
Home buyers determine the market value of your property by looking at the features and benefits of your home (how many bedrooms, bathrooms, square footage, etc.) and compare your property to other homes on the market. They look at recently sold properties similar to yours to see what your home is worth.
What have similar homes in your area sold for?
Real estate agents can help you figure out your current market value. Give us a call if you are interested in a free home pricing report or if you have any other questions. I would be happy to help you!