This is the number one question homeowners ask and the number one answer they get is ‘it depends’.
Why is it such a difficult question?
Home valuation is tied in to many different factors aside from how many bedrooms and bathrooms. In Savannah, in particular, the block or position on the block can change property value for $20,000 or more. Then there’s updates and layout, age of the roof, ac system and so much more. And we haven’t even looked at the market yet!!!
How is value determined?
Value is determined by what someone is willing to pay for it. This means that it doesn’t matter what you paid for it, if no one else is willing to pay that. This is one of the struggles of a fluctuating market. During the housing market bubble of 2006, home prices were grossly inflated which had skewed the value or perceived value of homes. Therefore a home valued at 2006 standards is very different than 2015 standards. Current value is determined by what your home would sell for in today’s market.
So . . . how much is my home worth?
The best way to determine the current market value of a home (how much it would sell for today) is to do what’s called a Comparative Market Analysis or CMA. The CMA pulls together information about the property with comparable properties in the area, called Comps. Once the appropriate comps are determined this data is complied into a report that breaks down what has sold in the past 6 months, what is currently under contract and what else is available for sale. Then an appropriate valuation of the property can be deducted. Thus answering the question: how much is my house worth.
‘It depends’ is an easy but unsatisfying answer, whereas to get a real answer takes some time and research. That’s why as a Realtor, we’re here to help.