foreign hey guys welcome to this episode of the Rachel Cruz show and today we're going to talk about how to figure out what your home is really worth your home is a huge factor in your total net worth not to mention selling your home is a really big deal I've heard that about half of Americans cry when they sell their home and it might be tears of joy tears or sadness or probably tears of stress and I totally get it because listen this is one of the most valuable things that you own your home but you really can get a good idea of the value of your home no tears necessary so first let's go over two definitions of home value there's fair market value and appraised value so fair market value is the price that both the buyer and the seller agree is fair so asking an experienced real estate agent to do a comparative market analysis is the best way to determine a fair market value for your home so basically that's when the agent looks at your particular area and with similar houses are selling for but appraised value is how much your mortgage lender determines your home is worth an appraised value is based on things like your home's age locations square footage number of bedrooms and bathrooms upgrades and recent sales in the area now this number is more for mortgage lenders and taxes it doesn't have to match the sale price okay so now that you know the two different types of values we're gonna go through four steps so that you know how much your home is worth step number one learn the facts about your house and the local market so Believe It or Not Your Homes at market value is not based on what you paid for your house or how great that you think it is so in a nutshell market value is what buyers are willing to pay for your home sometimes it's way more than what you bought it for sometimes it's less which is not great but it really has to do with your local real estate markets and I know that you love your home and it can be really hard for you to see your home through buyers eyes but the sad truth is they're gonna see that beautiful pink pinstripe accent wall in your daughter's room is just one more room that they're gonna have to repaint and that and that's so sad you work so hard on your home and someone goes in like I hate the light fixtures why did they make this color and you're like because it's beautiful I don't know I love it so here are also some facts about your house that a buyer will be looking location location is your house in a nice part of town how close is it to highways and shopping and even safety does your neighborhood have sidewalks what's the crime rates curb appeal is it beautiful or is it ugly square footage how big is it what's the layout are the appliances updated how are the Schools rated I mean there's so many factors you guys that go in to buying a house okay so here are some facts about your Market that buyers are going to consider and sadly some of these are just out of your control mortgage interest rates so a mortgage is a huge financial commitment so a high interest rate will keep buyers from pulling the trigger that's what we've seen with rates this past year we've all experienced that time of year so for example people are not going to probably move in the middle of December or even after the school year has started so expect to get more or less offers depending on the time of year also supply and demand guys this is a big one if there are a ton of houses on the market that means you've got competition on the other hand if there are more buyers than for sale signs which has happened a lot in the recent years raise that price and finally look at how similar homes in the area have sold so remember that comparative market analysis that we talked about well knowing how much people are willing to pay for a home like yours in your neighborhood can give you a good idea of how much you can sell your home for now I know that it's a lot but quick online search can give you a ballpark number all right step two is to use a free online home value estimator so if you search your address online you're going to see like Zillow or Redfin come up and you're going to find different facts about your house that are public like the year it was built the number of rooms and bathrooms square footage and how much you and each previous owner paid for the home yep thank you internets gives you all that information so along with all that you're also going to see the estimated market value no don't get excited about this number online estimates are helpful but they're not always accurate the real value you'll get from these sites comes from the information that you're finding out about your housing markets okay before I move on let me take a quick break and tell you about our sponsor Carly Jean Los Angeles are you guys there are clothes in my closet that I never wear I admit it but I'm trying to simplify and that's why I love the capsule pieces from Carly Jean Los Angeles every piece can be mixed and matched to become a key part of your look Carly Jean clothes are classic and flattering and they'll save you money because you can wear them in multiple ways instead of just one special occasion so simplify the way you dress without sacrificing your style go to carlyjeanlosangeles.com and use code Rachel for 20 off your first purchase so you guys that's 20 off the entire site of Carly Jean Los angeles.com with code Rachel all right step three is to compare your home's value to other homes in the neighborhood so you guys this is the only time I'm ever going to tell you to compare your house with someone else's so on sites like Zillow you can see is my home value trending upward or downward how does my home value compare to other homes in my neighborhood and my ZIP code what's it like uh what's the market like is it hot or cold time to sell that's useful information that you can discuss with your agent when it comes time to set the price of your home step four is to work with the real estate agent agents have access to better databases and use real world experiences to compare your home's Nitty Gritty details to recent sales and current listings no computer can do that a good real estate agent will take the time to come and actually look at your house they'll consider the Landscaping the condition of the house and any upgrades that you added and then they're going to determine the market value of your home so getting a great real estate agent you guys it is so worth it and for a fast and easy way to find a Ramsay trusted agent try our endorsed local providers program program we only recommend top agents with years of experience so you can sell your home on your timeline for the right price so I'll drop a link to our website where you can find a Ramsay trusted agent in the show notes and remember the market value is not based on formulas it's based on how much someone is willing to pay for your home and these four steps will help you find the right price to get you the most money in the least amount of time as possible so you can move on literally okay so make sure to share this video with a friend who's considering selling and remember you guys so take control of your money and create a life you love [Music]
