How do I really know how much a home I want to buy is worth? -Sherry
Great question but please allow me to re-word it for you because a house like anything else is only worth what someone is willing to pay for it. So let’s re-phrase the question to read “How do I know the value of a home?” The easiest and most reliable way to know the value is to have your realtor check the neighborhood to see what homes are selling in the area. Now remember most of these internet sites that I’m not going to mention (you probably have heard of them) are not nearly as accurate as we would like them to be. Your realtor will have the most correct and up to date information available from doing a CMA (comparative market analysis) of homes sold in the area. Whatever people are paying for homes in your neighborhood is an excellent guideline of what someone would be willing to pay for yours. A good rule of thumb is to use the square foot method. doing simple math if a 2000 square foot home sold for $200,000 recently, that’s a $100 a square foot. Then multiply the square footage of your home by $100 dollars. If you are not sure of your square footage you can go to coj.net and follow the prompts to the property appraiser, put in your address and all the information on your home will come up. If several houses in your neighborhood have sold, just do an average of the prices of the home and the averages of the square footage. Now there are a few variables such as one has a pool, one has granite counter tops, or one may have a Florida room...so these things have to be taken into account and a value added to each one to come up with correct price. It’s a little confusing but your realtor should be well versed in this area. This is how a licensed appraiser will do this. Don't ever include homes that are on the market for sale to be included in this calculation. If you are not working with a realtor please do not hesitate to call me and thanks for the question!