Know Your Home's Worth

Do you know what your home is worth? If you don't, you should, especially if you're considering selling it anytime soon. When you're selling a home, there's a very fine line between asking too much and asking too little. It can actually make the difference between a home that sells in two weeks and one that takes several months. It's therefore prudent to learn how to determine your home's market value.

It's first necessary to understand that home values don't just go up (as witnessed by the current housing swoon). A home can also depreciate in value. It can be seen in neighborhoods where the owners aren't quiet as diligent about keeping their properties in first-rate condition. Let's face it; no one will pay top dollar to live next to a house with an unkempt yard or a car propped up on cinderblocks. Your home may be worth $150,000 according to the size and style, but you won't get that much for it with messy properties all around (hence, the old real estate adage: location, location, location!).

Fixing up your home can help return it to its proper value. Over time, home goes through many changes. If you have small children you generally expect to have juice stains on the carpet and crayon marks on the walls. And, it's okay to have those things while you're living in the home. For instance, you can place a throw rug over the stain and no one will ever know. But when it comes time to sell your home, that attitude will have to change.

Fix the things that will make a difference to potential buyers. Most people really don't want to have to change the carpet as soon as they move in. They also wouldn't want the hot water heater to go out after only a month or two in the house. If at all possible, make repairs before putting your home up for sale. That will prevent you from having to disclose the defects, which if left unfixed would certainly drive the selling price down.

Additions to your house increase value. Over the years, families often make changes to their home. Adding a swimming pool, an office, or turning the garage into another bedroom all add to the value of the home. But be prudent here; some additions are worth more than others.

A real estate appraiser can give you an idea of what your home is worth in relation to other comparable properties. The market value can be expected to increase if the home is in a good neighborhood, near quality schools, close to shopping centers and banks, and governed by a neighborhood association. The figure that the appraiser gives your home is not necessarily the absolute final value of your home, however. There are a number of things that factor into market value; this is simply a place to start. A real estate agent can help determine the fair market value of your home by taking these things into account along with the climate of the local and regional markets.