Understanding your property’s value is a crucial first step when preparing to sell a house in the Tampa Bay area. Having a clear picture of your house’s worth can help you make informed decisions and navigate the selling process with confidence.
Here are some things to consider when evaluating your house’s value.
Why knowing your home’s value is important for planning a sale
Accurately calculating your home’s value helps you set an effective home sale price. The right price should make your property more appealing to serious buyers and reduce 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 Tampa Bay 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 Tampa, St. Pete, or Sarasota
Several key factors impact the value of houses in Tampa Bay. Understanding these can help you get a clear understanding of your property’s worth:
- Location: Being close to features such as top-ranked schools, hip parts of town, and popular Tampa Bay amenities like Clearwater and Indian Rocks Beach 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 property value. New construction and updated older homes tend to sell for more.
- Recent renovations or improvements: Attractive, updated interiors, as well as amenities like garage apartments and swimming pools, can increase property values in the Tampa Bay area.
- 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.
- Size and layout: Larger homes tend to hold more value, especially if they offer in-demand layouts.
- Comparable homes in the area (comps): Recently sold houses in your area that are similar in size, style, and condition (often called “comps”) can be used as a baseline for determining market value.
Types of home valuation
Here are the three main types of valuations you can consider when deciding on a sale price:
- 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: Here, a Tampa Bay appraiser would evaluate your house’s worth based on factors like location, size, condition, and neighborhood comps. This method of valuation is commonly applied when the buyer is using an FHA loan or some other form of 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 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 Tampa Bay area before you put it on the market. Here’s a breakdown of some approaches you might find helpful:
Online home valuation tools: Online calculators are good for getting an initial idea 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 be accurate.
- FHFA House Price Index (HPI) calculator: Provided by the Federal Housing Finance Agency, this online tool bases its calculations on the House Price Index in your area. It estimates home value changes over time based on average appreciation rates. While more accurate than other online calculators, the average doesn’t factor in the current condition of your home. Plus, the average is calculated using data from across the entire Tampa-Saint Petersburg-Sarasota area and may not line up with neighborhood and property type.
- Hiring a professional appraiser: A home appraiser provides a detailed valuation by evaluating your home’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 the features of 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 price that matches with market conditions. While not as official or in-depth as a professional appraisal, CMAs are often a good way to identify your house’s value.
When to consider a professional appraisal
A professional appraisal can be very helpful for some sellers. If your property has unique features or significant problems, or if the state of the Tampa Bay real estate market is unclear, investing in an appraisal might be wise. 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
- Over-relying on automated tools: Online calculators are often inaccurate and should not be taken as the final word when setting a home sale price.
- Ignoring the state of the market: Try to consider whether it’s a buyer’s or seller’s market when you estimate a sales price for your house.
- Not paying attention to 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 unique selling points: Special characteristics like new appliances and covered patios can add value if marketed correctly.
We Buy Ugly Houses® buys many types of properties.
If the market slows down, if your house needs major repairs, or if you’re simply looking for a fast, convenient sale, selling “as is” could be a smart decision. We Buy Ugly Houses® in Tampa Bay considers various kinds of properties in Tampa and the surrounding area, including turnkey houses, fixer-uppers, and houses with significant problems. 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!
