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How Do You Calculate Overall Market Value?

How Do You Calculate Overall Market Value?

If you’re a homeowner in New Jersey looking to sell your house, understanding its true market value is crucial. Overpricing your home could cause it to linger on the market, while underpricing means leaving money on the table. An accurate determination of market value helps sellers price their homes competitively and market them effectively. In this blog post, real estate expert Nancy Kowalik discusses how to calculate the overall market value of your home.

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Key Takeaways:

  • Market value is estimated by analyzing recent sales of similar nearby homes  
  • Factors like location, size, condition, and upgrades impact a home’s value
  • Working with an experienced local real estate agent is key to getting an accurate valuation

The Sales Comparison Approach

The foundation of determining market value is the sales comparison approach. This method looks at recent sale prices of comparable properties, or “comps”, to estimate the likely selling price of your home. Identifying the right comparable sales is critical.  

To find relevant comps, you’ll want to look at houses that have sold within the past 3-6 months and are located within a 1-mile radius of your home. The properties should be similar in age, square footage, number of bedrooms/bathrooms, lot size, neighborhood amenities, and overall condition. The more alike the comps are to your home, the better.

Making Adjustments

Once you’ve identified 3-5 closely comparable recent sales, you’ll need to make adjustments based on how your home differs. If your house has an extra bedroom or bathroom, you’d adjust the comp prices upwards. If it needs a new roof or HVAC system, you’d adjust down. This appraisal step accounts for the unique features of your property.

Calculating the Estimated Value  

After adjusting the comparable sale prices, you calculate the average of those adjusted values. This becomes a reasonable estimate of your home’s current market value in the local New Jersey market. Of course, market conditions like seasonal effects, interest rates, and inventory levels also influence the final sales price.

The Value of a Real Estate Professional

While online home valuation tools can provide a rough estimate, they don’t replace a comprehensive analysis by an experienced local real estate professional. Factors like an agent’s nuanced knowledge of the area, access to detailed property records, and pricing expertise are invaluable.

Call Nancy Kowalik To Get a Free Home Valuation 

How Do You Calculate Overall Market Value?
Nancy Kowalik

If you’re considering selling your New Jersey home, the first step is understanding its true market value. Nancy Kowalik and her team offer free, detailed home valuations to sellers.

They’ll carefully analyze the most relevant comparable sales, make appropriate adjustments based on your property’s specifics, and provide a market-based pricing strategy.

Contact Nancy Kowalik and her team of real estate experts today to get started with a professional home valuation.

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