Snippet URL: http://homeguides.sfgate.com/calculate-fair-market-value-home-7949.html
Selling Through Lubbock MLS Listings? Know Your Home’s Value First
Before having your home registered in reliable Lubbock MLS listings with the help of a realtor, you should try to determine its fair market value first.
If you’re planning to sell your house this 2014, you had better look for a realtor who can put your property up in reliable Lubbock MLS listings. This is an excellent way to get word of your property for sale to as many prospective buyers in as little time as possible. Before doing this though, you should find out just how much your home is likely to sell, and you can find out by researching its fair market value.
Value Drivers
When you ask leading realtors like Coldwell Banker Rick Canup Realtors about putting up a price tag for your home, it would help to know just what factors affect your home’s value in the first place. Its proximity to certain amenities, schools, transportation, and emergency services for one will have a heavy bearing on how much you can get for it.
Land and Home Rebuilding Costs
First, calculate the current land value of your lot – do this by determining the average selling price of land in your community, calculate the price per square foot and multiply the result to your land area. Add to these figures the cost of rebuilding your home, as well as the improvements and additions you have done, and you should come up with an estimate of your home’s fair market value.
Comparing Similar Properties
Another route you can take is to compare the average selling price of similar properties in your area (note that only those in your immediate neighborhood should be considered, since location significantly affects real estate costs). You might have to consult with a local real estate agent to gather the data you need, as in the similarities between your home and the samples you’ll be using for the computation, and he or she can even lend you a hand.
Home Income
An article in SF Gate tells of yet another technique in determining your home value, particularly if you’re renting out a part of it, by the income it generates:
For example, if you rent out a section of your home, you can include the income it produces as part of your fair market value estimate. However, this income-based assessment method is mainly used for commercial buildings such as hotels, rental properties and office buildings.
Knowing how much your home will be priced in the current market should help you better negotiate with real estate agents and prospective buyers who might come across your MLS listing. Always remember that the main key to pricing Lubbock, TX real estate is usually location, location, and location.
(Article Information and Image from How to Calculate the Fair Market Value of a Home, SF Gate)
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