How much is your house worth? Sometimes, it can be really hard to get an answer to this question. Some homeowners  set the price too high initially based on a recently sold property nearby with a different floor plan, others incorrectly calculate their house value as the price they paid for it originally and add the costs they had to pay for improvements over the years. Sometimes, an inexperienced agent may even agree to set the price to match their client’s wishes.

Overpricing a home initially can set your transaction up to fail, and can cost thousands in the long run in wasted time showing the property.. To ensure a quick sale for top dollar, it’s important to be able to determine the exact worth of your house or property. We will explain 4 different methods you can use to estimate how much your house is worth.

Visit a lot of open houses to determine your house value

Most of the things that we’ll mention today can be done from your computer, but not this one. For this one, you will have to visit a lot of different locations. Luckily, going to open houses can be really educational and fun.

Search for open houses online that are showcasing properties similar to yours. Try to, visit at least three or four locations to get a better perspective on how the market is currently pricing houses similar to yours. You should also pay attention to the number of other people who have come to check out each open house – the higher the number, the higher the interest.

Check out your competition

A big part of setting the right price includes finding out how your house stands when compared to the competition. Adjust your search so that you can find properties that are easily comparable. Try to find at least two homes that have similar features, finishes, updates, and layouts as your own. Make sure they are located no further than 1 mile from your house in more metropolitan areas, and 5 miles in more rural areas. Ideally, you’re looking for homes that that were recently sold within the last six months.

This will give you a much better idea of the most recent and accurate market activity in your specific area. Then you can more accurately price your own home depending on the market.

Median price

Median sales prices are used in the real estate industry as indicators of how a certain market is performing. This tool can also be used for finding out the value of your property. Find a website that represents your area and search for the attributes of your house to find various prices for similar properties. Look closely at what the graph is showing, and see if there are any drastic changes or fluctuations. Of course, make sure to check the validity of the information you are presented with by broadening your search beyond one website to utilize multiple resources.

Pay for the evaluation

This isn’t the same as asking an agent to give you his or her opinion. It means getting a proper valuation from an objective property valuer, who is usually hired by finance companies or banks. Both agents and valuers will do similar things, however a valuer will also give a “valuation”, which he or she will back up. Banks use these figures to lend large amounts of cash. An agent’s opinion is just an opinion, but a valuer gives certain guarantees as well.

Setting a price doesn’t need to feel like a guess. If you follow the four steps above, you can feel confident in the price you set for your property. Just make sure to cover all the four steps before deciding on your price, and try to market your house as effectively as you can!