Home sales figures in Memphis in July 2022 saw a slight dip from the previous month. But the same can’t be said for house prices. They rose by 6.2% from July 2021 to hit a median sales price of $233,000.
If you’re thinking about selling your Memphis home, no doubt you’re wondering how to calculate home value. It’s both a science and an art, with various factors that influence how much you can achieve. But there are a few hints and tips that can help you to determine your home value and list it for the right price.
Let’s take a closer look at how to calculate home value to achieve the sale price you want.
How to Calculate Home Value
Home prices fluctuate constantly. There’s always an element of guesswork involved before you list a house. Here’s how you can make an educated guess when selling a home.
Use an Online Home Value Estimator
A quick Google search will bring up lots of online home value calculators. They’ll ask you for a few details about your home and provide a valuation almost instantaneously. They work by looking at average sale prices in your area.
It’s important to take this valuation with a grain of salt. It works solely on data and this is not the only factor that determines a home’s value. They can’t take into consideration the reputation of your street, the condition of your home, and other intangibles that impact how much a home is worth.
They can be an interesting starting point. But you shouldn’t base your expectations solely on an online valuation.
Conduct Your Own Research
If you have the time, you can do your own research to calculate how much your home is worth. Start by gathering key information about your home:
- Date built
- Square footage
- Bedrooms and bathrooms
- Amenities and features
- Structural repairs needed and their estimated cost
- Known issues that could affect property value
You can then dig into local sale prices using online real estate sites. They allow you to search the sale price of local properties. You can also view details of the homes and photos and compare these to your own home.
The problem with this approach is that it takes time and expertise that most of us don’t have. Also, it’s very hard to be objective and impartial when valuing our own homes. To get a more accurate valuation, it’s best to turn to professionals.
Get a Comparative Market Analysis
Realtors are in a good position to answer the question, “how much is my home worth?”
They have extensive knowledge of sale prices in your local area. They also know the neighborhoods and how desirable they are to local buyers. They can perform a comparative market analysis to give you a valuation for your home.
They may charge a small fee for this service. Some will do it for free and hope that you hire them to sell your home for you.
Work with a Home Appraiser
Home appraisers mainly work with people who are applying for a mortgage. Lenders require a professional appraisal to ensure that the home really is worth the amount that a buyer is paying for it. Appraisers are impartial and are licensed by the state of Tennessee.
But you can also employ an appraiser to give you a valuation for your home. They’ll produce a detailed report and will look at lots of factors before they determine your home value. This includes:
- Number of bedrooms and bathrooms
- Square footage
- Curb appeal
- Structural condition (from a visual inspection only)
They will also research local market conditions and public land records. They’ll take into account factors such as the level of flood risk to the property. Finally, they’ll issue a report that provides a market valuation.
Working with an appraiser is a great way to get an impartial valuation. However, it is an expensive process and most homeowners don’t use this when selling a home.
Selling a Home As-Is: How Much Is My Home Worth?
Sometimes we need to sell our home fast.
Maybe your marriage has broken down and both sides want to sell their home and move on with their lives. At other times, we may find that we can no longer afford the mortgage and are looking to sell before the bank forecloses on our home. Or we may simply have inherited a property that we want to cash in as soon as possible.
Other people find that after years of living in their home, they can no longer afford the major repairs it needs. It may be time to downsize to somewhere more modern that needs less maintenance.
In these situations, traditional ways of determining home value and selling a home may not be the best option. That’s where home buying services come in.
What Is a Fair Cash Offer?
A home buying service purchases properties for cash. They buy properties to flip. That means they will renovate them and sell them for a profit.
They will take some details about your home and appraise it themselves. Based on this information, they’ll make you a fair cash offer.
This will not reflect the market value of your home. But it will allow you to move on quickly. You could have the cash in your bank within a matter of days if that works for you.
You can also schedule a future date that works for you, to allow you time to find a new place to live. These services take the hassle out of selling a home. If you are not happy with the fair cash offer, you are under no obligation to proceed.
How We Buy Houses Memphis, TN Can Help
Now that you know how to calculate home value, it’s clear that there’s a lot involved! Of course, a home is only worth what someone is willing to pay for it. If your home is in poor condition or you need a quick sale, We Buy Houses Memphis can help.
We make selling a home simple. We’ll discuss your home over the phone and then schedule a walkthrough. After that, we’ll make you a fair cash offer.
There’s no need for appraisals or expensive repairs. If you’re happy, you can proceed. If not, simply walk away.
Call or text us at 901-300-4165 or fill out our online form to get a cash offer for your home today!