Determining your home’s value helps get the ball rolling on your sale. The listing price can set the tone for your entire sales process, and the predicted value of your home weighs heavily in future financial plans.
Homeowners must always keep in mind that closing prices are often quite different from the listing price or even comparable sales in your area. This fact makes all methods for estimating the value of your house just that — estimates. Even the most reliable method, called a comparative market analysis, involves some educated guesswork on the part of the real estate agent.
Regardless, having a price in mind can let homeowners know what to aim for and how to begin reaching their target market. Here are some of the methods people use:
1. Property Tax Assessment Value
Unlike many state or local governments which will reduce the amount taxed by10 to 20 percent, the taxable amount of your Dallas/Ft. Worth real estate property is a full 100 percent. Luckily, this cost is offset by the fact that Texas does not withhold state income taxes. Homeowners can use the tax assessor’s number to get a wide ballpark figure. This number will be based more on land values than the housing market, but it can give a baseline to work from that is available at a glance.
2. Median Rate per Square Footage
Another method for getting a very rough figure is to use the median list price by square foot and multiply it by your home’s square footage. As of writing, the median list price per square foot in the Dallas/Ft. Worth area is $106.
The figure you get after multiplying the median list price per square foot times the number of square feet in your home will obviously ignore factors like finish, home condition, location or desirable amenities, but you still know where you stand based on the general market at the time.
3. Look at Your Neighbors
Neighborhood can often be a more relevant factor than amenities or square footage when it comes to home sales. Make a note of homes that have sold in your neighborhood within the past year and write down their addresses. With these addresses in hand, you can call your county recorder’s office and request the selling price. These figures are a matter of public record, so they will be given freely. You could also look at a county’s website, but the online databases often lag behind and will not show the most recent sales numbers.
Once you have several figures in hand, you can compare your home to the one closest to it in size or floor plan. You could also average the numbers together to get a feel for the range in which your home would fall.
4. Hire an Appraiser
Getting a home appraisal will be costly, but it will also give you a concrete number from which to work. Appraisers have access to historical data as well as recent home value trends. Since these people often work with mortgage companies, they will be more familiar with the financial side of home ownership rather than the current market movement. This fact usually makes the number more objective, but possibly not as close to the final closing price given typical variables.
5. Find an Expert Local Listing Agent
A listing agent makes a living off of knowing what makes homes sell and for how much. They employ a sophisticated formula that is grounded in recent market data along with a healthy dose of instinct. The home price they come up with represents how they feel the market will respond best to your specific home in your specific area.
All of these methods help people listing a Dallas/Ft. Worth home for sale understand how much their home could be worth. In the end, there is simply no predicting exactly what sort of offers you will receive or how the sales process will turn out. Even so, having an expert at your side can give you peace of mind and a better idea of where your home sale is headed.
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To get a FREE estimated home value from a REALTOR experienced with sales in your local market, you can simply fill out the form below. We will respond with our best estimate within a few business days, and then set about getting a more detailed estimate once we visit your home.