How Do I Figure Out What My Home Is Worth?

Posted by Steph Kaye on Friday, September 27th, 2013 at 8:07am.

Since 2008  the value of properties around the world have gone through a major revision. Thankfully the economy is showing signs of a healthy recovery with rising real estate prices being one of the major indicators. If you are thinking about about selling your house right now you should find out what your home is worth.  We will review two ways to determine the current value of your home, trust me it will be fun to find out what your property is currently worth and what it could be worth in the future.

As a property owner we all want the most money possible for our property but your prospective buyers are only willing to spend a certain amount, this is the cornerstone of our capitalistic economy “supply and demand”.  In order to find out what other people are willing to pay we need to look at historical pricing. When we say historical pricing this is anything from the last 30-90 days. What a home sold for in 2009 is much different than what it would sell for today. Look on the MLS system for similar properties in your neighborhood, similar in the total square footage and location of the home. Note the selling price for properties in the area over the last 30-90 days. Now break out your calculators and take the average price of the homes being sold and divide that by the average square footage, this would give you the average cost per square foot in your area. Now take the total footage of your home and multiply it by that amount and you should have a ballpark figure on what your home is worth.

After you have worked out the math and figured out what your home is worth based on your findings it is time to contact a Birmingham real estate agent and have them conduct a professional appraisal, it would be interesting to see what numbers you both come up with. Keep in mind that housing values can change due to demand so always use the most current appraisal when setting your asking price.

Leave a Comment