What Is My House Worth?! – The Simple Solution

What Is My House Worth?! - The Simple Solution

Video Transcript:

Do you find yourself asking: What is my house worth?

Are you asking this because you’re trying to sell it? Are you asking this because you want to know what the value of your asset is (probably your biggest asset)? Or are you just looking for all of the options, right, if you’re thinking about selling it you want to know what it’s worth. You want to broker that out and find out the best way to get the most money for your house.

Hi everybody! My name is Doug. I’m a local investor in Philadelphia. I have a company called signature properties and we help homeowners in Philadelphia get out of really sticky situations with their homes or property – really quickly, for a fair price. So if you or anybody you know seems like they’re in that situation or even if they’re just looking to sell their house under regular circumstances, feel free to pass along my information or go to my website, sellmyphillyhouse.com, and we’d be happy to work with you. We love working with local people here in Philadelphia.

Today we’re going to talk a little bit about “what is my house worth?”. There’s a number of ways to come up with this number and I’m going to walk through each of them and and show you where some of the shortfalls are and where some of the better ways and advantages are of using different methods, okay. So I’m going to be quick about this but I think you’re going to really get some value out of it.

Your Opinion

The first is your own opinion of what it’s worth.

Now this is probably the worst because this has zero relevancy to the market and it’s purely coming from your own head. You might have thought: “Hey, I bought my house for a $100,000 last year I invested $50,000 in a new kitchen and roof and now it’s worth $150,000.” A very simple way to think about it. The problem with your opinion is that there’s this belief that people overvalue what is theirs. They always think it’s more than it really is because it’s their own and you can’t fault yourself for thinking that way. It’s a prideful way of of thinking and that can harm you when you’re going to sell your house. You want to be a open-minded and you want to be market-oriented. And I’ll get to that in here in a second but this is just selling it based on what you think it is and if you do this your house is going to sit on the market for a really long time, okay.

Assessed Value

The second is the assessed value.

A huge source of confusion. My house says it’s assessed for $200K. I can surely get that much for it or more or less right. And your thinking starts to be based off of that point. The assessed value is a value that is determined from your municipality or your town or your county for tax purposes. For property taxes they levy a tax as a percentage of your assessed value and your property could be reassessed too and we could talk about that in another video, but that’s not the market value of the house. That’s not what your house would sell for. That’s just what the local government uses to create taxes for you, which is a wonderful thing, okay. So don’t base it on that either. That’s not good.

Zestimate

The third is: I’ll just write “zestimate” , right, from zillow. And redfin has an estimate too.

They use a computer to go around, scour for like properties and come up with a range or a number. It’s good, it’s not great. It’s not going to give you exactly what you need to to come up with what your house is worth, okay.

Comparables

The fourth, maybe the best, maybe up there with the best, comparable sales. “Comps!”

This is the golden option. Here you’re going to want to use comps, okay. You can ask your realtor or your agent to pull comps for you. There should be no problem for them. Comps operate on the concept of substitution. There’s a house across the street from you, it’s the same size, same age, same numbers of bedrooms and baths, same condition, right, same everything! The law substitution says that you could exchange one for the other from a buyer’s perspective and they would be for the same price or very similar price. Comps use adjustments to take into account if there’s any differences of the comparable sales that are close to you. You’re going to want to use comps if you’re thinking about determining what your house is worth, okay.

Whatever Someone Will Pay!

But the last thing I’m going to say which is the most interesting thing and I’m always asking everyone to think a little differently is your house is worth whatever someone is willing to pay but willing to pay! And this one is interesting ,okay, because your house could be worth one amount if you listed on the MLS and you have a year to wait it could be worth a different amount if you want to get it done super quick and you want to do no contingencies cash offer, okay.

So the reason I bring this up is because in today’s market it’s crazy, right. People are doing over asking and then they’re sneaking in these contingencies around appraisals and so forth and they’re just bidding really high just to get the offer accepted. And then they kind of pull back after the inspection and ask for all these repairs and everything to get back down to even below what the offer price was. It’s crazy. Your house is always what it’s always worth what someone else is willing to pay and that is a moving target for all of the reasons I just said.

Think Differently

If you want more information on how to value the worth of your house, the market value we’re talking about, call me up. My team, we’re professionals, at giving you options. We can give you a no obligation cash offer that can close really quickly. We have another kind of offer we can give you that’s a little bit different at a different price point as well. Ask us about that.

It’s a very varying thing, what the value, the market value your house is. But it’s also based on what you want to get out of it as the homeowner or property owner. I hope this was helpful. Again, my name is Doug. My website is sellmyphillyhouse.com and my company is Signature Properties. We are based out of Philadelphia. If you want to know what your house is worth in Philadelphia, you can call us up, contact us and we’d be happy to help you. Thanks!

Doug Greene

Doug Greene is a creative real estate investor, master content curator and evangelist for easier, better and more enjoyable real estate experiences for all. He owns Signature Properties, a Philadelphia real estate company that solves unique problems for homeowners and investors. His work has been featured on Yahoo Finance, AOL, Family Handyman and many more authoritative publications.

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