Accurately calculating your house's value is an important step in ensuring a smooth and successful sale in the Milwaukee market. Here's what to consider when determining home value.
Why knowing your home’s value is important for planning a sale
Calculating your home’s value has several advantages. It helps you set an effective home sale price. This should make your house more appealing to the right buyers and help reduce the length of time your property remains on the market. Overpriced houses can be difficult to sell in the Milwaukee real estate market. Underpriced houses may sell quickly but prove less profitable for the seller.
By knowing the value of your Milwaukee home, you can:
- Set a home sale price that will attract serious buyers.
- Avoid lowering your asking price or even having to re-list your property.
- Make informed decisions about home repairs or renovations before putting your house on the market.
Factors that affect your house’s value in Milwaukee
Understanding these factors can help you get an accurate understanding of your property’s worth:
- Location: Being close to parks, top-ranked schools, and popular Milwaukee neighborhoods like the Historic Third Ward can make a big difference in your house’s value.
- Condition and age of the house: The age and condition of your house will almost always impact your property value. New construction and well-maintained older homes tend to hold more value.
- Recent renovations or improvements: Recent updates, as well as amenities like finished basements, can increase home values in Milwaukee.
- Market trends and demand: In a seller’s market, housing demand is greater than supply, which means you might be able to set a higher price. In a buyer’s market, the opposite rule applies, and you might need to consider a lower price.
- Size and layout: Larger houses tend to hold more value, especially if they have features like extra bathrooms and on-trend layouts.
- Comparable homes in the area (comps): Recently sold homes in your area that are similar in size, style, and condition give you a baseline for estimating your house’s market value.
Types of home valuation
Here are the three main types of valuations a Milwaukee property seller can consider:
- Assessed value: This value, determined by government assessors, is used for property tax calculations. This figure is usually lower than market value and is rarely used as a basis for real estate sales.
- Appraised value: A professional appraiser evaluates your house’s worth based on factors like location, size, condition, and neighborhood comps. Lending companies will almost always want an appraisal before approving the buyer’s financing.
- Market value via comparative market analysis (CMA): Real estate agents use CMAs to estimate market value by comparing your house with similar homes sold in the last six months. They use a formula where they look at nearby houses of similar size and type, typically calculating the value based on 250-square-foot intervals.
How to find out your home's value before selling
There are several ways to assess your house’s worth in Milwaukee before you list:
- Online home valuation tools: Online calculators are good for getting a rough estimate of your house’s value. Keep in mind that these tools don’t factor in specific property features or recent upgrades, which means they may not give you an accurate number.
- FHFA House Price Index (HPI) calculator: Provided by the Federal Housing Finance Agency, this tool estimates home value changes over time based on average appreciation rates in your area. Bear in mind that the HPI calculator average is based on the entire Milwaukee housing market, which means it is combining a lot of different neighborhoods and property types together. It also doesn’t factor in the condition of your home.
- Hiring a professional appraiser: A home appraiser provides a detailed valuation by evaluating your house’s size, condition, location, and comparable sales. A professional appraisal can be considered a reliable source of home-value information.
- Comparative market analysis (CMA): A CMA, conducted by a real estate agent, measures your home against recently sold properties. CMAs are regularly used by real estate agents to set a price that matches with market conditions. While not as formal as a professional appraisal, CMAs are often a trustworthy way to find out your house’s value.
When to consider a professional appraisal
A professional appraisal can be very helpful if your house or your circumstances are unique. According to Angi.com, the average US seller can expect to pay around $350 for a home appraisal.
Common mistakes to avoid when valuing your home
- Depending too much on automated tools: Online calculators are often inaccurate and should be used with care when setting a home sale price.
- Not paying attention to the market: Try to consider whether it’s a buyer’s or seller’s market when you come up with a sales price for your house.
- Not factoring in home improvements: Failing to consider the value of past upgrades can lead you to undervalue your property, while overlooking essential repairs and renovations can lead you to setting your price too high.
- Overlooking selling points: Special characteristics like high-quality patios and decks can add value if marketed correctly.
We Buy Ugly Houses® buys many kinds of properties.
If the market slows down, if your house needs major repairs, or if you’re simply looking for a fast, hassle-free sale, selling “as is” could be a smart decision. We Buy Ugly Houses® in Milwaukee considers all kinds of properties in Milwaukee and the surrounding area, ranging from turnkey single-family homes to condos or multi-family units. We keep the process simple and can sometimes close on your house in as little as 3 weeks.
Get in touch today to find out how easy selling your house can be!
