What is the market trade value for a home?
If you’re considering selling your home or looking at purchasing a house, there are some things to consider. The market trade value for any property is what that home would be worth in an open and fair market. This price varies wildly from property to property, of course, and can change based on factors like renovation and the surrounding homes.
Here are the items you should consider before whipping out a house payment calculator to figure how quickly you can pay off a house!
How Much Was It Last Purchased for, and When?
This idea can be a great way to assess how much your home may be worth. Unfortunately, the longer it’s been since the house was last bought and the current day, it can make this number a less reliable factor. The cost of homes is at an all-time high, which means we can’t look at a house purchased for a hundred thousand dollars in 2000 and possibly consider what it’s worth now. It’s better to work off a modern price comparison at that point.
Are There Comparable Homes Sold In the Area?
Comparable homes are one of the best ways to gauge your house’s value. Don’t be precious when looking for a similar home; consider how updated their kitchen is and what your house’s condition is currently like. Don’t be afraid to be completely honest with yourself, even if the news isn’t something you want to hear. You can’t pretend your three-bedroom ranch style home is comparable to a four-bedroom, two-story home built a couple of years ago.
Be honest, look at good comps, and try to work off of that.
How Updated Are The Major Rooms?
How many updates have you worked on in this home? Has it been enough to up your house’s value, or has it mostly kept it at the average of your current market? Look at your home on a room by room basis, update the more price-changing rooms like kitchens and bedrooms, and then work around that for price. Do your research on which places are the best for updates, don’t finish your basement or try to add on a four seasons room by closing off your porch if that’s not something you want and could use. Make changes that keep your home’s financial health in mind.
What’s The Current Market?
Although the market trade value for a home tries to work around the idea of a fair and even market, that type of market isn’t as common as we’d like to think. The housing market is almost always fluctuating between buyers and a seller’s market. The buyers market means lower home prices and more incentives through the purchase, while a seller’s market sees prices skyrocket.
A balanced price would settle between these two, but it’s hard to tell what the market will be like before you try to sell. If the year 2020 taught us anything, we shouldn’t assume we know what to expect from the market.