Since launching our new Free Home Valuation service, we have had hundreds of people ask us what their property is worth in today's real estate market.
Some have tried to sell their homes in the recent past and acknowledged that they did not receive much information on pricing their home, which I believe is the second most important factor in being able to sell a home for its top dollar.
They confessed they just told their previous agent how much they wanted for the home, and that is the price that was set. Needless to say, we hear this a lot from people who have previously failed to sell their homes.
Fortunately, you can get a real valuation of your house and use it in your decision making process, and this post covers all that you need to know and do.
Median Home Price
Before you address your individual home, you should take a look at overall market conditions. Realize that your house is a commodity, and its value is relative to other houses that exist as potential competition when it comes time to sell.
A study of current supply and demand dynamics in the Tallahassee real estate market will allow you to best understand the conditions that you will face when you sell your home. Remember, conditions change, so these reports have to be timely and specific to your home for you to elicit the information that you need.
The real estate graph above is just one way to get a feel for what you should expect when your home is being valued by a competent real estate company. It tracks the median home price and median home value each month, and then creates a trend line to show the direction of current and past market movements.
From this graph, I would generally conclude:
- Home prices (red and orange lines above) are similar today as they were in the end of 2010 and the beginning of 2005. This simply means that buyers are spending the same amount of money for a house as they were during those two times.
- Home values (blue and purple lines above) are similar today as they were in early 2011 and the later months of 2004. This simply means that sellers are receiving the same amount of money for a house as they were during those two times.
What Is Your Property Worth Today
If you have not made any major changes to your home, I suspect you will find it to be worth the same today as it was in the final quarter of 2004. Of course, this is apply overall market conditions to your specific home and neighborhood, and that is no way to get a specific valuation.
For this reason, online valuation tools have not yet achieved the ability to discern the differences between adjacent neighborhoods and specific property features and conditions. For example, the Zillow valuation tool is helpful to get a feel for the direction of the market, but it fails more times than not to value a home correctly.
So if you are planning on making a move in 2015, find out what your house is worth today so that you can make the appropriate decisions and prepare accordingly.