How to Compare Real Estate Values in Your Neighborhood

Answer

It is essential to have a current awareness of the value of real estate in your community, since the prices of homes and other properties are subject to frequent shifts. In the event that you own a house and are considering either selling it or refinancing it, it is important that you be aware of the market worth of your property at the present time. Homebuyers also need to be informed on the pricing of homes so that they are able to make an offer that is compelling and competitive on a property without paying more than it is worth.

  1. Choose particular criteria to use in your comparison, such as a set number of bedrooms and bathrooms or an estimated square footage and lot size. For example, a set number of bedrooms and bathrooms. Take into consideration the condition of the home, as well as any additions or improvements that it could have. Your comparison will be based on these parameters that you’ve established.

  2. Make advantage of websites that are dedicated to real estate in order to get access to the public Multiple Listing Service, also known as the MLS. This service will assist you in finding recently sold properties in your area that are analogous to your own. Websites like Trulia and Zillow provide a list of recently sold houses in your region, including those that were privately sold. Simply enter your criteria into the search forms, and you will be shown with a list of previously sold houses that suit your requirements. Choose a sample of roughly five different houses to evaluate for your comparison.

  3. Attend open houses that are being held in your area and continue to monitor their status until they are sold. It is one thing to see the facts on the internet or on paper; however, getting to know these houses on a personal level can help you make a more accurate comparison. For instance, two houses might have the same number of bedrooms and bathrooms, but one of the homes could have a layout that gives the impression that it has more space. It is possible that there is a greater amount of natural light. Although these factors may not be reflected in the property’s official appraisal, there is little doubt that they have an impact on the property’s overall worth.

  4. Hire a real estate agent. There is a possibility that the information you get online, despite the fact that it is helpful, may not provide you with an accurate picture of the real estate market in your community. For instance, it will not make a comparison between the initial asking price and the final selling price, nor will it indicate the period of time that the home was on the market until it was finally sold. It will also not show any significant upgrades that required a higher asking price or significant repairs that caused a drop in the price of a similar house. Neither of these things will be disclosed. You should get an official valuation of your house from a real estate professional if you want an exact comparison.