When you’re getting ready to sell a house in the Orlando area, knowing the value of your property is an important first step. Pricing it correctly can make the difference between a profitable sale and a house that stays on the market longer than it should.
Let’s discuss what to consider when figuring out your house’s value.
Why knowing your home’s value is important for planning a sale
Calculating your home’s value helps you set the right price for your property, which should help attract the right buyers and ensure a quicker sale. Overpriced houses can linger on the Orlando real estate market, while underpriced houses may sell quickly but not give sellers the kind of returns they are looking for.
By knowing the value of your Orlando home, you can:
- Set a home sale price that will attract serious buyers.
- Avoid lowering your asking price or having to re-list your property if it doesn’t sell.
- Make informed decisions about whether to pay for repairs or renovations before putting your house on the market.
Factors that affect your home’s value in Orlando
Several key factors impact the value of houses in Orlando. Understanding these can help you get an accurate understanding of your property’s worth:
- Location: Being close to desirable features like high-quality schools, parks, and Orlando amenities can do a lot to increase 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 maintained older homes tend to hold more value.
- Recent renovations or improvements: Recent updates, as well as amenities like swimming pools, can increase home values in Orlando.
- 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 sell for less.
- Size and layout: Larger homes typically hold more value, especially if they offer the features and layouts that Orlando buyers are looking for.
- Comparable homes in the area (comps): Recently sold homes in your area that are similar in size, style, and condition can be used to determine your house’s market value.
Types of home valuation
Here are 3 types of home valuations to be aware of:
- Assessed value: This value, determined by government assessors, is used for property tax calculations. This figure is usually lower than market value and is seldom used to set a selling price.
- Appraised value: A professional appraiser comes out to your property and evaluates it based on factors like location, size, condition, and neighborhood comps. This method of valuation is regularly used in the home-selling process, especially when financing is involved.
- Market value via comparative market analysis (CMA): Real estate agents use CMAs to estimate market value. The formula CMAs use is to look at nearby houses of similar size and type that sold in the last 6 months, typically calculating the value based on 250-square-foot intervals.
How to find out your house's value before selling
There are several ways to assess your house’s worth in Orlando before you put it on the market. Here’s a breakdown of some potentially helpful methods:
- Online home valuation tools: Online calculators are good for getting a ballpark 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 figure.
- FHFA House Price Index (HPI) calculator: Offered by the Federal Housing Finance Agency, this tool estimates home value changes over time based on average appreciation rates in a specified metropolitan area. Keep in mind that the average doesn’t factor in considerations like the condition of your home. Plus, the HPI calculator average is based on the entire Orlando-Kissimmee-Sanford housing market, which means it is combining a lot of different neighborhoods and types of residential property together.
- 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 compares your home to recently sold properties that are similar to yours. 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
If your Orlando property has unique features (good or bad) or the state of the market is unclear, investing in a professional appraisal might be a smart move. 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 house
- Over-relying on automated tools: Online calculators can be inaccurate and should be used with care when setting a home sale price.
- Not knowing the state of the Orlando market: Try to consider whether it’s a buyer’s or seller’s market when calculating home value.
- Not factoring in upgrades and repairs: 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 set your price too high.
- Overlooking potential selling points: Special characteristics like swimming pools and the latest home appliances can add value if marketed correctly.
We Buy Ugly Houses® makes selling easy.
For Orlando sellers who are worried about their house’s value and want a fast, no-hassle sale, selling with us could be the right fit. We Buy Ugly Houses® in Orlando considers many kinds of properties in Orlando and the surrounding area, like turnkey single-family homes, condos, and even vacation rental units that have seen better days. We buy houses “as is,” keep the process simple, and can sometimes close on your house in as little as 3 weeks.
We would love to see your house!
