You’ve watched as “For Sale” signs have sprung up across your neighborhood, and it’s a sure sign that the real estate market is booming again. Is it finally time to sell?

You need to find out how to determine market value of your property before you can answer that question.

What is Market Value?

Your real estate taxes give you an incomplete impression of your home’s worth. Your house is assessed to determine property taxes, and many locations have capped that value to keep taxes low.

You also won’t get an accurate value from the listings in your area. The number of bedrooms, bathrooms, and square footage make a significant impact on the sales price.

Market value is the price determined by a real estate professional for selling your home. This may be different from the final sales price, but it’s their experienced opinion of the value.

How is Market Value Determined?

The value of a property is found in several ways, depending on the nature of the property. For most residential homes, you can average the price from the sale of nearby “comparable” homes.

In the case of new construction, you can find the value by calculating the cost to build the home, called the “Cost Approach.”

How to Determine Market Value for Your Home

Real estate professionals have years of experience in calculating the value of property. However, it’s possible to get a rough idea of what your home could bring with a few simple steps:

Features to Compare

Note your home’s features, including

• Size
• Number of bedrooms
• Number of bathrooms
• Energy-efficient systems
• Grade of finishes and fixtures

Finding Comparable Homes

Next, search county’s property appraiser’s website for three to five recent sales in your neighborhood from the last six months to a year. They should be similar in size, age, and the number of rooms.

Then, look at current listings and find three to five “comp” properties.

Finding the Average

Average the sold price of the homes and then the listing price of the ones for sale.

Somewhere between those two averages, you’ll get an excellent ballpark figure of the market value of the property.

Professional Assistance

For a more comprehensive approach, you can also get an idea of the market value of property from a trained professional.

Real Estate Agent

Consult a licensed agent who can assess your home’s features and run “comps.” They also consider intangible features that affect sales prices. Factors like curb appeal, updated color schemes, and landscaping can increase the sales price.

Once determining all factors, they can then sell a house for market value based on their professional opinion.

Appraiser

One way to determine real estate market value is to hire an appraiser. An appraiser will compare your home with like properties, but unlike your agent, their report is unbiased.

Mortgage companies rely on these objective appraisals to determine the market value of the property.

Getting Ready to Sell

If you’re not sure how to determine market value in your home, you can certainly look at similar houses for sale to see if it’s a good time to sell.

However, if you want to sell a house for the best price based on its unique features, talk to a licensed real estate agent. They can walk you through the process and help you get the best price for your home.