What Is My House Really Worth? 5 Mistakes People Make When Estimating Value
What Is My House Really Worth? 5 Mistakes People Make When Estimating Value
When it comes time to sell, most homeowners rely on rough guesses, Zestimate estimates, or even outdated tax records to figure out what their home is worth. But in today’s fast-moving real estate market, that approach can cost you tens of thousands of dollars—or worse, delay your ability to sell altogether.
In this post, we’ll walk you through the 5 most common mistakes homeowners make when estimating their home’s value—and how to avoid them.
1. Relying Solely on Online House Value Calculators
Automated Valuation Models (AVMs) like Zillow’s Zestimate can give you a ballpark number, but they often miss:
Recent renovations
Off-market property data
Changes in buyer demand in your neighborhood
Why it matters: These tools pull from public data, which may be outdated or incomplete. Use them as a starting point, but not the final word.
2. Ignoring the Condition of the Property
Two homes with the same layout can have very different values depending on:
Interior upgrades or deferred maintenance
Roof, plumbing, or HVAC condition
Curb appeal and staging
Pro tip: Real estate comps should match in condition, not just in location and square footage.
3. Using Tax-Assessed Value as Market Value
The assessed value is often lower than true market value and used mainly for property taxes.
It’s updated infrequently
It doesn’t reflect what buyers are willing to pay
Solution: Get a current Comparative Market Analysis (CMA) from a local expert or investor.
4. Looking at the Wrong Comps
The best comparable sales (comps) are:
Sold in the last 3–6 months
Within 0.5 miles of your home
Similar in square footage, age, and layout
Mistake: Looking at active listings or pending sales, which don’t reflect final selling price.
5. Forgetting About Terms of the Sale
Two identical homes could sell for different prices based on:
Cash vs. financed buyers
Seller concessions (e.g., repair credits or closing cost help)
Speed of closing
Pro tip: A cash offer with no contingencies can be worth more than a financed offer with strings attached.
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