When it’s time to sell a house in the St. Louis area, a key first step is to calculate the house’s value. Accurately determining your house’s value can make the difference between a profitable home sale and one that leaves money on the table.
Here’s an overview of how home value is calculated and how understanding it can benefit you as a seller.
Why knowing your house’s value is important for planning a sale
Calculating your home’s value helps you set an effective home sale price. The right price could make your property more appealing to serious buyers and cut down the time it takes to close. Overpriced houses can be tough to sell. Underpriced houses may sell quickly but prove less profitable for the seller.
By knowing the value of your Saint Louis home, you can:
- Set a home sale price that will attract the right buyers.
- Avoid lowering your asking price or even having to re-list your property if you don’t get offers.
- Make wise decisions about home repairs or renovations before putting your house on the market.
Factors that affect your home’s value in Saint Louis
Several key factors impact the value of houses in St. Louis. Understanding these can help you get an accurate understanding of your property’s worth:
- Location: Being close to desirable features like schools, green spaces, hip parts of town, and popular St. Louis 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 typically affect your selling price. New construction and well-maintained older homes tend to hold more value.
- 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 sell for a lower price.
- Comparable homes in the area (comps): Homes in your area that are similar in size, style, and condition (often called “comps”) can be used as a baseline for estimating your property’s market value.
- Recent renovations or improvements: Updates to areas like your kitchen or master bath, as well as adding amenities like garage apartments and swimming pools, can increase property values in St. Louis.
- Size and layout: The square footage of your house tends to impact value. Your house’s layout plays a part, too.
Types of home valuation
Different valuation methods can hold accuracy and importance when you’re selling a Saint Louis house. Here are the three main types of valuations you might consider:
- Market value via comparative market analysis (CMA): CMAs estimate market value by comparing your property 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.
- Assessed value: This value, determined by government assessors, is used for property tax calculations. This value is usually lower than market value and is rarely used when setting a selling price.
- Appraised value: A professional appraiser evaluates your house’s worth based on things like location, size, condition, and neighborhood comps. This method of valuation is common in the home-selling process, especially when the buyer is using an FHA loan or other type of financing.
How to find out your home's value before selling
There are several ways to assess your home’s worth in Saint Louis before you put it on the market. Here’s a breakdown of some potentially helpful methods:
- Comparative market analysis (CMA): A CMA, conducted by a real estate agent, compares your house to recently sold properties that are similar in size, layout, and location. CMAs are regularly used by real estate agents to set a listing price that is right for the neighborhood and market conditions.
- Online home valuation tools: Online calculators are good for getting a ballpark 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 be accurate.
- Hiring a professional appraiser: A home appraiser provides a detailed valuation by evaluating your house’s size, condition, and location. Appraisers usually factor in comps as well. A professional appraisal can be considered a reliable source of home-value information.
When to consider a professional appraisal
If your property has special features, unique challenges, or the state of the St. Louis real estate market is unclear, investing in an appraisal might be wise. According to Angi.com, the average US buyer can anticipate paying around $350 for a home appraisal.
Common mistakes to avoid when valuing your home
- Overlooking unique features: Special characteristics like new appliances and solar panels can add value if marketed correctly.
- Not factoring in the market: Try to consider whether it’s a buyer’s or seller’s market when you estimate a sales price for your house.
- Over-relying on automated tools: Online calculators are sometimes inaccurate and should not be taken as the final word when setting a home sale price.
- Not thinking about home improvements: Failing to consider the value of past upgrades can lead you to undervalue your property, while overlooking essential needed repairs and renovations can lead you to setting your price too high.
We Buy Ugly Houses® buys all kinds of properties.
If you need major repairs or the real estate market goes sideways—or if you simply want a fast, convenient sale—selling “as is” could be a smart decision. We Buy Ugly Houses® in Saint Louis considers all kinds of properties in St. Louis and the surrounding area, including turnkey houses, fixer-uppers, and even houses with significant problems. We keep the process simple and can sometimes close on your house in as little as 3 weeks.
