Austin already had an unstoppable housing market coming into 2020, and despite the challenges of the pandemic, home prices continued to surge. In March 2021, the median price for a home rose by nearly 29 percent compared to last year to an all-time high of $425,000.
These statistics have many people wondering what their house is worth and even considering whether or not to take advantage of this seller’s market and putting their property up for sale.
So how can you determine your house’s value?
DIY Market Analysis
One approach to finding your property’s value is to conduct a market analysis. To perform one, you’ll need to gather comparables (or comps) of other homes in the area. The comps should be the same number of bedrooms and bathrooms and similar in square footage, age, amenities and design. Next, look at the buy and sell history of the homes. Finally, review the surrounding area. Is the neighborhood considered “up and coming”? What does the neighborhood demographic look like? How are the schools ranked? What are the economic trends? What percent over list price are properties selling for? As mentioned above, the median price for a home rose by nearly 29 percent compared to last year; the highest increase in the United States.
Work With a Realtor®
As you can see, there are a significant number of factors that go into determining how much your property is worth when performing a DIY market analysis. Seeking the advice of an experienced Realtor® will not only save you valuable time, it’ll provide you with more accurate results.
You may be thinking, “What about online value estimators?” While there are many online home valuation calculators available, these tools only provide a general ballpark estimate of the value of your home based on your address. Online price calculators can be useful as a reference, but they have limitations in terms of their scope as well as their reliability. All it takes is missing one comparable, or having an incorrect sales price to skew the results when determining what your house is worth on your own.
Your Austin Realtor®, meanwhile, has real world experience in your community and knows the nuances of your neighborhood’s micro-market. They’ll perform a comparative market analysis (CMA). A CMA provides an agent’s evaluation of the home and market to provide an estimate of value, typically for listing purposes.
Your agent will use the sales prices of homes that sold over the past six months as a guideline, then will narrow the field to include only those homes within your subdivision and/or within a certain radius of your home. They compare the properties to one another, adding and deducting value according to the age of the home, size, location and amenities.
By taking into account certain aspects of a home that may affect its value and marketability, an agent will be able to better assist you in determining the value of your home.
Hire a Professional Appraiser
Lenders require a home appraisal before they’ll approve a mortgage, but homeowners can also hire an appraiser at any time to estimate the value of their home.
Appraisers have tools specific to their industry, which even Realtors® don’t have. In addition to evaluating the home’s condition, the appraiser researches market data, public records and talks with buyers, sellers and real estate brokers active in the market area. Data researched includes sales, leases, and current listings of similar properties. Other data include land sales and residential construction costs. After all factors affecting the value are considered, the appraiser develops an opinion of value and prepares an appraisal report.
Other Benefits of Knowing Your Home’s Value
The benefits of finding a home’s value don’t end with a purchase or sale; Refinances, home equity lines of credit, insurance premiums and annual property taxes are all based on home values.
If you’re wondering what your home’s value is, we recommend starting by contacting one of our experienced real estate agents. Our team follows the market, looks at home conditions and knows the ins and outs of each neighborhood and make determinations using both data and their expertise.
Have you been thinking about selling your home? With demand high and supply low, homes are going for more than sellers expect. Feel free to contact us to learn why now may be the best time for you to take advantage of this seller’s market.