How much is my house worth?
When considering selling your Idaho home, or a refinance, knowing and understanding Boise home values is essential. Getting an accurate value of how much your house is worth is one of the most important aspects of real estate, and especially critical when selling or a lender providing financing.
From a mortgage lender's point of view, the house acts as the collateral, so it is completely necessary to have an accurate property value when offering financing. This is also obviously very important to the seller, who will want to list for the highest price possible, but also to the buyer who will want to acquire the home for the lowest price.
From a mortgage lender's point of view, the house acts as the collateral, so it is completely necessary to have an accurate property value when offering financing. This is also obviously very important to the seller, who will want to list for the highest price possible, but also to the buyer who will want to acquire the home for the lowest price.
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How much is my home worth today?
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What your Boise home isn’t worth
For any homeowner its understandable to find it confusing that there are many different sources around that indicate their home's value. Here are a few:
- Property tax assessment. Each Idaho county uses a unique calculation to establish home values for a tax assessment, but this price rarely correlates with the market value of your home. Your tax assessment can be higher or lower than the current market value.
- Neighbor’s home value. Even if your neighbor’s house is very similar to yours, it’s probably not identical. A REALTOR® can help you evaluate your home’s worth in the context of other nearby properties.
- Cost when you purchased the home. Whether you purchased your property recently or not, the value can change quickly and may have gone up or down.
- Desired home worth. You can always try to put your home on the Boise real estate market for your desired price, but if you’ve over- or under-priced it, you’re short-changing yourself. Because you’re either selling too low or your house could sit on the market and eventually sell for less than if you priced it correctly in the beginning.
Getting an Online Home Value Estimate in Seconds
Boise home appraisals used to be hard to come by unless you hired a professional, but thanks to the advent of the Internet and related technologies you can now pull up a valuation in seconds.
An online house value calculator should be your next best friend if you're searching for a home or looking to sell yours. You can receive an estimated appraisal instantly, on your home free, which helps you decide the next step to take in the home-buying or home-selling process. Do keep in mind, though, that actual appraisals will help you target your actual home value.
An online house value calculator should be your next best friend if you're searching for a home or looking to sell yours. You can receive an estimated appraisal instantly, on your home free, which helps you decide the next step to take in the home-buying or home-selling process. Do keep in mind, though, that actual appraisals will help you target your actual home value.
Comparative Market Analysis
An Idaho REALTOR® can do a comparative market analysis (CMA) with recent market data to help you estimate your home's worth. When you sell your home, an appraisal will be required by the buyers’ lender, so keep in mind that your home has to appraise for the selling price or, depending on how your contract is written, you’ll have to renegotiate the sale or the buyers will need to come up with extra cash.
A CMA is both an art and a science. While it’s based on data, it also requires Idaho market knowledge and intuition about which homes to compare and how to interpret the prices. Most Boise Realtors® will look for recent sales of homes that are similar to yours, preferably within the past two or three months, up to about six months. In addition, a Realtor® can look at other homes currently on the market and homes that didn’t sell that were taken off the market to compare values.
When determining how much your home is worth, the comparison of your home with others should include not only the size and the number of bedrooms and baths, but also the condition of your home, the neighborhood and the proximity to Boise area amenities. If you do not understand the comparisons a Realtor® is making, ask to see some of the homes currently on the market or look online at photos of the properties.
A CMA is both an art and a science. While it’s based on data, it also requires Idaho market knowledge and intuition about which homes to compare and how to interpret the prices. Most Boise Realtors® will look for recent sales of homes that are similar to yours, preferably within the past two or three months, up to about six months. In addition, a Realtor® can look at other homes currently on the market and homes that didn’t sell that were taken off the market to compare values.
When determining how much your home is worth, the comparison of your home with others should include not only the size and the number of bedrooms and baths, but also the condition of your home, the neighborhood and the proximity to Boise area amenities. If you do not understand the comparisons a Realtor® is making, ask to see some of the homes currently on the market or look online at photos of the properties.
Other factors to consider:
- Real estate is local. Your Boise real estate agent can explain current market factors in your community, including what's selling, what isn't selling, and why. This information is critical to setting an optimal price and terms.
- If your house is located in a desirable Boise area you will be able to get a higher price than you can for the same house in a less desirable area.
- If a house has amenities that are currently popular in the marketplace, it will bring a higher price.
- A home that has been better maintained and “shows” better will always sell for more than one that has had deferred (neglected) maintenance and needs work.
- Boise home buyers expect everything to work properly. It’s an important trust factor, and worth the time and expense to make basic repairs.
- Idaho markets differ by location and time. When interest rates are low and the local job base is growing, it's great to be a seller. But when times are slack and mortgage rates are rising, homes also sell. How much is my house worth? The key is to be realistic, to what market conditions will allow.