How Much is My House Worth Today, in the Current Market?

Question: "I am selling my home later this year. I know that a lot has changed in the economy over the last few years. So how do I figure out how much my house is worth today, in the current market?"

This is the most important question a homeowner can ask before trying to sell a home. It's a critical stage in the planning process, but many sellers skip this step entirely. So just by asking this question, you're getting off on the right foot.

How to Determine What It's Worth

So let's address this all-important question: How much is my house worth in the current market? First, you should note the word "current" in that last sentence. This is the key to everything. The amount you paid for your house several years ago, or even last year, is totally irrelevant. Why? Because when home buyers and their real estate agents evaluate your asking price, they'll be using sales data from the last 30 - 90 days. They want to know what the property is worth today, not in the past.

Here's the bottom line: If you're trying to get the price you paid at the top of the market, but prices have dropped since then, you're headed for disappointment.

So that's the first thing you need to focus on -- recent sales data. This is the starting point for all of your pricing research. You need to start keeping track of sale prices in the area. Not the listing price, mind you, but the amount the homes are actually selling for in your neighborhood. You should pay particular attention to those properties that are similar to yours (same size, number or rooms, etc.). These are referred to as comparable sales, or comps. This is what real estate agents will use when trying to validate your asking price, on behalf of their clients.

Related article: How do I find real estate comps for my area?

How much is my house worth today? We are getting closer to answering this question, but we're not quite there yet. Once you've gathered some recent sales data, you need to factor in whatever upgrades you've made to your home. This is where things get tricky.

If you haven't done much to the home, and you have several comps from very similar houses, then it's a pretty straightforward pricing situation. But if you've made big upgrades, such as a kitchen renovation or swimming pool, then it gets more complicated. If you fall into the second category (major upgrades), it would be a good idea to have a professional home appraiser evaluate your home. The price properties for a living, so they can help you determine how much the house is worth ... upgrades and all.

How Much to Ask for the House

Based on all of this homework, you should be able to set a realistic asking price for the home. I can't stress enough how important this is. If you get this part of the process wrong, and end up overpricing the house, it will probably stay on the market for a long time. That's no way to sell a home. So you need to set the right price from day one.

This article answers the question: How much is my house worth today, in the current economy? If you have other questions about this subject, be sure to use the search box at the top of this website. There's a lot of helpful information on this website, and that's the easiest way to find it. Good luck with your selling process.