19.5% of sellers dropped the asking price for their home in June 2024, which reveals that they initially overpriced to seek greater profits. But that’s not all – 16% of sellers still find it hard to set the right price for their home, while 10% struggle to sell on time.
These figures accurately reflect the general trend in the housing market right now. Buyers are few and far between, and those looking to offload their home are bearing the brunt. It’s no surprise that the current inventory has remained on the market for a median of over 46 days.
This situation highlights the importance of an accurate home price estimate in 2024. Set a price near your home’s market value for a quicker sale and to avoid high maintenance costs. Use online estimators for an initial figure, and refine it as you gather more data.
What Are the Benefits of a Home Value Estimation?
Estimating your home’s value before selling can help you:
1. Price Your Home Correctly
Overpricing can cause your home to sit on the market too long, which makes buyers wary. This often leads to fewer offers and may eventually force you to lower your home price. Conversely, underpricing may lead to a quick sale, but you risk losing money.
You can use a free home value estimator to avoid these issues. It provides you with the property’s value report within a minute, and helps you set a fair and competitive price.
2. Negotiate Better Deals
Knowing your home’s worth gives you leverage during the sale. With accurate data, you can reject low offers and explain why your price is fair. It ensures that offers match your home’s true worth and helps you get a better deal.
3. Plan for Future Investments
Your home’s value is an accurate indicator of how much you can borrow if you refinance or take a home equity loan. It also helps you estimate proceeds from your home sale, and budget accordingly for other investments.
In addition, tracking property value trends helps you decide when to sell, or invest in improvements. It can also tell you if you should hold on to your house for future gains.
What Factors Affect Your Home’s Value?
Here are some factors you have to consider before setting a price for your home:
- Your Location: Homes in desirable neighborhoods, with low crime rates and access to quality schools, typically have higher values. Factors such as the local climate, proximity to major cities, and overall cost of living also influence the price.
- Housing Market Trends: The number of homes for sale in your area directly impacts prices. When inventory is low, prices tend to rise as buyers compete for limited options. Conversely, sellers may need to lower prices when inventory is high to attract buyers.
- Home Improvements: Renovations can increase the value of your home. This can include upgrades like new flooring, fresh paint, or a roof replacement.
How to Estimate Your Home’s Value?
The right price can distinguish between a fast, profitable sale and a home that stays on the market for long. You can use these 2 common methods to estimate your home’s value:
1. Use a Home Value Estimator
You can estimate your property’s worth within a few minutes with Houzeo’s free home value calculator. Enter your address, and the tool will estimate your property’s worth.
2. Home Appraisal
A professional home appraisal is an expert assessment of a property’s value. A licensed appraiser assesses the home’s features and conducts a physical inspection.
Unlike real estate agents, who provide a market value estimate, licensed appraisers provide a detailed and objective evaluation. They look at recent sales of similar homes, specific features of your property, and its location.
How Important Is Your Home’s Value Estimation Before Selling?
Assessing your home’s value before listing it helps avoid delays during the sale. Overpricing forces price reductions later, while underpricing can make you miss profit opportunities.
Setting a fair price that matches the market value builds buyer confidence and simplifies negotiations. It also keeps your home from spending too long on the market.
