3 Ways To Discover What Your Home Is Really Worth

By John Lyons

John Lyons, a distinguished broker associate at Baird & Warner, has carved a niche in the Chicago real estate market with his comprehensive, client-first approach. With over $130 million in career sales, Lyons has a proven track record in assisting a diverse range of clients, including luxury home buyers, first-time buyers, sellers looking to move up, and investors.

Whether you’re considering selling, refinancing, or simply curious about your property’s value, understanding how to determine your home’s worth is crucial. Today, we’ll explore three essential strategies to help you unveil the mystery behind your home’s market value.

1. Research comparable sales (comps). One of the most reliable methods for determining your home’s worth is researching comparable sales, often called “comps.” This strategy involves analyzing recently sold properties in your neighborhood that are similar to yours in terms of size, features, and condition.

Look for properties that have sold within the last six months, as they provide the most accurate reflection of the current market. Pay close attention to factors such as square footage, number of bedrooms and bathrooms, and overall condition. Adjust the value of your home based on any significant differences. Properties in the same neighborhood or even on the same street can have varying values. Take into account the proximity to amenities, schools, and public transportation. Real estate markets are dynamic and can fluctuate. Consider whether property values in your area are rising, stabilizing, or declining.

2. Get a professional appraisal. While researching comps can give you a good estimate, a professional appraisal provides an authoritative and impartial assessment of your home’s value. Appraisers consider various factors, including the property’s condition, recent improvements, and the overall real estate market.

Ensure the appraiser is licensed or certified by a recognized authority to guarantee their expertise and adherence to industry standards. Clean, organize, and address any necessary repairs before the appraisal to present your property in the best light. Inform the appraiser of any recent renovations or improvements that might positively impact your home’s value. An appraisal typically comes with a cost, but the insights gained can be invaluable, especially when negotiating with potential buyers or lenders.

3. Utilize online valuation tools. Various online tools and platforms, like Zillow, can provide quick and convenient estimates of your home’s worth. While these tools may not replace the accuracy of a professional appraisal, they can serve as a useful starting point.

Different online tools may provide varying estimates due to differences in algorithms and data sources, so consult multiple platforms. Online tools may not account for unique features or recent improvements. Use them as a supplemental resource rather than the sole determinant of your home’s value.

Whether you’re planning to sell, refinance, or simply want to stay informed about your investment. By using these strategies, you can gain a comprehensive understanding of your home’s market value. Armed with this knowledge, you’ll be better equipped to make informed decisions regarding your property. If you have any questions, don’t hesitate to reach out by phone or email.