How do you calculate the value of your home?
And if you’re using a tool like Zillow or Realtor.com, what other factors should you consider before taking a “Zestimate” seriously?
That’s what we’re going to talk about!
At Sunrise Properties - We Buy Houses, we’ve been helping people sell homes in Knoxville for quite some time. And we’ve learned a thing or two about running comps on a home and figuring out how much a property is actually worth.
So we wanted to share some knowledge with you. 🙂
Start with tools like Zillow.com and Realtor.com (But Take Caution)
If you search for “What is the value of my home” in Google, you’re likely going to come across results like Zillow and Realtor.com that promise to tell you how much your home is worth in an instant.
And while those tools are a good place to start, they are not taking all the important factors into consideration.
They don’t consider, for example, that bathroom or kitchen update you spent $10,000 on or that fire pit you added to the back yard. More on the negative side of things, they also don’t factor in broken appliances, damage to the home, or poor landscaping.
Naturally, a lot of different things determine how much you can sell your home for on the MLS.
What Zillow or Redfin or Realtor.com is going to tell you, though, is a ballpark number for how much your home will sell for if there’s nothing wrong with it, if its curb appeal is adequate, and if it’s clean with up-to-date appliances.
To get the true value of your home, then, you’ll need to factor in all of the necessary nuances.
So let’s talk about that!
P.S. If you want to sell your home for a fair cash price, give us a call at 865-686-5494. We can buy your house as-is and close in as little as two weeks!
How To Calculate The Value Of Your Home in Knoxville
Here’s a quick breakdown for calculating the value of your home after you’ve looked at your “Zestimate”.
Keep in mind that you won’t be able to come up with a guaranteed price-point for your home — its value will also be determined by small factors such as how quickly you need to sell and how competent your real estate agent is at negotiating.
But after you’ve considered the following factors, you should have a pretty good idea of how much your home is worth!
1. Bed & Bath
The first thing to consider is how many bedrooms and bathrooms your property has. Zillow or Redfin will take this into account when they give you an estimate, but they can’t calculate what they don’t know.
So if you made an addition in the time you were living there, make sure to add that onto the overall value of your home. An extra bedroom can add up to 15% to the value of your home depending on the size and quality of the addition.
2. Market & Neighborhood
Market matters a lot. And not just the general market of Knoxville, but also the neighborhood where you’re located… and even the neighbors you have directly around your home.
All of that contributes to the value of your home.
To get the best idea of how much your home could sell for, look at the price of similar nearby homes that have sold recently and compare their home to yours.
The closer, more similar (in size, quality, style, etc), and more recently the home has sold, the more apt comparison you’ll be able to make.
(In fact, this is a high-level overview of how we run comps on homes for our sellers here at Sunrise Properties - We Buy Houses!)
3. Cost of Repairs
Does your home need some repairs?
Naturally, unless you make those repairs yourself, your home is going to sell for less (because the buyers will have to make the repairs). So it’s important to deduct the cost of any necessary repairs from the “Zestimate” of your home.
It’s also worth noting that, if you plan to sell the traditional way (on the MLS with a real estate agent), you will probably want to make repairs yourself to attract as many buyers as possible.
4. Updated or Outdated
Is your house outdated or updated?
It’s not just things being broken or fixed that matters to today’s buyers… most people want to buy a home that’s modern and appealing. This means having updated appliances, cabinets, and counters. You might even consider hiring someone to stage your home so you can sell faster and for more money.
If your home is updated, then you’ll be better able to trust the “Zestimate” number — if your home is outdated, then you’ll need to deduct the cost of updating critical components in the home.
So… What’s The Value of Your Home?
You should have a better idea of how much your home is worth.
It’s okay to look at your “Zestimate”, but don’t take it at face value. Consider the home’s size, neighborhood, repair costs, and whether it’s updated or outdated.
And if you want to sell your house fast for a fair-cash price, give us a call at 865-686-5494. We’ll pay all closing costs and we can close in as little as two weeks!
Michael Wilson is a real estate investor based in Knoxville, Tennessee. He invests in properties throughout the United States and Latin America.