How do I know how much my home is worth?

Key Insights

• You can get a rough idea of what your property is worth by looking at tax-assessed home values and using automated online estimates.
• Consulting with a REALTOR® is a great way to determine the value of your home and price it appropriately.
• Your REALTOR can share pricing insights that will help your house sell quickly and for top dollar.

Homeowners looking to sell may find that after years of building memories in a house or investing in home renovations, it can be difficult to put a price tag on a property. Here are some insights you can use to determine the best steps toward discovering your home’s true market value.

Estimated market value

Also known as a property’s tax-assessed home value, this figure indicates how much a home is worth through county tax records. Since this home value is based on historical sales data and mass appraisal techniques, the records can be up to two years old.

When listing your home on the market, you’ll want to get a more current and individualized assessment of your property before selling it for its estimated market value — especially if you’ve made updates like expanding the master bedroom or investing in a new pool.

Automated online estimates

Another way to assess the market value of a house is through an online market analysis. A computer-generated analysis compares your home to similar nearby properties that were recently sold, in order to estimate your home’s value.

The comparison is based on factors like home location, size, condition and amenities. Remember, these comparisons are generated by an algorithm, so they can only take into account the variables shown in the data, which may not give you a complete picture of your home’s true value.

When it comes down to determining your home’s value before selling, it’s wise to hire an agent who can provide a more detailed analysis.

In-home comparative market analysis by a professional

Although it may seem convenient to get a home value check via tax records or a quick online estimate, you’ll want to have an expert step foot in your home to provide a detailed and specific market analysis of your house.

After all, a computer-generated analysis can miss a lot of details — perhaps your house has special features, including:

• Original hardwood floors
• Remodeled kitchen
• A his-and-hers closet setup that’s straight out of HGTV
• Backyard on a preserve that can never be developed
• Location in an exceptional school district

Because every home varies — and even a small difference in location can make for a big variance in the market value of a house — it’s important to have a local expert evaluate the home in person so they can present you with their qualified evaluation.

Reach out to a licensed REALTOR® who knows your area to get an in-person home value estimate today.

Wait, what happens if an expert is saying my home is worth way less than the automated estimate?

Online estimates don't know the nitty-gritty details about your home's condition and its unique selling features, so they often offer inaccurate market values or broad ranges. In fact, these numbers can be off by anywhere from a few thousand dollars to tens of thousands of dollars.

While we understand the frustration of hearing that your home is worth less than you assumed, it’s important to remember that the true value of your home is what a buyer will pay for it in today’s market. There are also recommendations your agent can make to help you attract multiple offers and get top dollar.

By working with a local expert who understands pricing trends and buyer demand in your area — rather than relying on a computer that can’t factor in local nuances — you’ll get a more realistic idea of what your home could sell for.

I’m not in a hurry to sell. Is it okay to list it for higher than the assessed value, and see if anyone “bites?”

Many would-be sellers share the mentality that they can list their homes high and see if they can score a high-bidding offer. If they aren’t in a hurry to sell, these homeowners believe they can lower the price tag down the road if the offers don’t flood in initially.

However, this theory is a common home seller myth. Why? Well, most buyer demand comes within the first two weeks of being on the market. During this initial listing phase, you can expect:

• Your home’s listing will gain attention online and through email alerts to potential buyers.
• Interested local buyers to tour your home at a showing or open house.

As a seller, you’ll want to optimize the initial buzz of your home listing. But if buyers are turned off by the price tag, you may find your home lagging on the market. Buyers may assume that something is wrong with the house or conclude that it’s overpriced.

The result? Sellers may receive even lower offers than they would have if they’d priced their homes fairly from the start.

Any other pricing tips or tricks?

You and your agent could consider listing your home for sale at a “round number” price point. It may sound a little odd but our analysis has found, for example, that homes listed for $250,000 sell faster than homes listed for $249,000. When it comes down to it, this home pricing trick could make a difference in how quickly you’ll get offers and how much you can net from potential buyers.

Key points and next steps

Whether you want to learn the market value of your home or you’re interested in learning more seller insights, get in touch with a local market expert by reaching out to Edina Realty’s customer care team today.