When you’re getting ready to sell a house in the Phoenix area, calculating your house’s value will likely be an important part of your game plan. Here’s how you can get started.
Why knowing your home’s value is important for planning a sale
Calculating your home’s value can help you set an effective home sale price. The right price should make your house more appealing to serious buyers and help reduce the length of time your property remains on the market. Overpriced houses can be difficult to sell. Underpriced houses may sell quickly but prove less profitable for the seller.
By knowing the value of your Phoenix home, you can:
- Set a home sale price that will attract the right potential 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 Phoenix
Several key factors impact the value of houses in Phoenix. Understanding these can help you get an accurate understanding of your property’s worth:
- Location: Being close to desirable features like green spaces, shopping, and popular Phoenix amenities 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 play a part. New construction and well-maintained older homes tend to hold more value.
- Recent renovations or improvements: Updated living spaces, as well as amenities like in-ground swimming pools and covered patios, can increase home values in Phoenix.
- 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, you might need to consider a lower price.
- Size and layout: Larger houses tend to hold more value, especially if the features and layout are right.
- Comparable homes in the area (comps): Recently sold houses in your area that are similar in size, style, and condition can be used to calculate the value of a piece of real estate.
Types of home valuation
Different valuation methods offer varying levels of accuracy and importance when you’re selling a Phoenix house. Here are the three main types of valuations you should 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 when setting a selling price.
- Appraised value: A professional appraiser evaluates your home’s worth based on factors like neighborhood comps, location, and the current state of your house. Appraisals are almost always conducted when the buyer is using financing.
- Market value via comparative market analysis (CMA): CMAs estimate market value by comparing your house with similar homes sold in the last six months. They look at nearby houses of similar size and type, typically calculating the value based on 250-square-foot intervals. Real estate agents use CMAs on a daily basis.
How to find out your house's value before selling
Here’s a breakdown of some potentially helpful valuation methods:
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Online home valuation tools: Online calculators are good for getting a rough estimate of your home’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: Using Federal Housing Finance Agency data, this tool calculates home value changes over time based on average appreciation rates in your area. While useful for understanding your local real estate market, the average doesn’t factor in your specific neighborhood and the current condition of your home.
- Hiring a professional appraiser: A home appraiser provides a detailed valuation by taking a look at 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): TheCMAs described earlier are regularly used by real estate agents to set a price that matches up with Phoenix market conditions. While not as official as a professional appraisal, CMAs are often a good way to find out your house’s value.
When to consider a professional appraisal
A professional appraisal can be very helpful in certain situations. If your Phoenix property has unique features or the state of the market is unclear, investing in an appraisal might be a good idea. 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 are often inaccurate and should be used with care when setting a home sale price.
- Not paying attention to market conditions: 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 considering home improvements: Failing to account for 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 selling points: Special characteristics like solar panels can add value if marketed correctly.
We Buy Ugly Houses® buys many types of properties.
We Buy Ugly Houses® in Phoenix considers various properties ranging from fixer-upper single-family homes to turnkey condos or multi-family buildings. We buy houses in Phoenix and the surrounding area, keeping the process simple and easy. We can also offer a fast, hassle-free sale, sometimes closing in as little as 3 weeks.
Find out how easy selling your house can be. Get in touch today!
