Warm weather isn’t the only thing heating up Arizona. Homes across the state are starting to see a substantial increase in property value. This comes as more Americans migrate to the Grand Canyon State to avoid cold weather and high taxes. According to Zillow, home values in Arizona saw a 6.6% increase in 2019 and could increase by 5% in 2020.
This can be great news for home sellers. But how do they determine a home’s worth before putting it on the market? Finding an accurate answer is never easy. Luckily, there are tools available to help give them a better estimate.
Figuring out what your home is worth
More than 50% of Americans say knowing the value of a home is crucial before listing it on the market. To get credible information, sellers can:
- Compare the cost of neighboring properties: A great way sellers can get a better picture of their home’s worth is by comparing the price of others in their area. They can do this by pulling comps. Doing so can be a cost-effective way for sellers to get a credible price estimate without hiring an appraiser. Sellers should consider pulling at least three comps to get an accurate number.
- Obtain comparative market analysis data: If sellers want a better picture of their home’s worth, they can request a comparative market analysis. While they’re not as extensive as an official appraisal, these evaluations can be done for little to no cost by a local real estate agent.
- Use a home index calculator: Sometimes, sellers may want to forgo using a low-cost third party and determine their home’s value themselves. If that’s the case, they can use the house price index calculator through the Federal Housing Financing Agency (FHFA). It uses what’s called the “repeat sales method” which can provide data on who’s owned the home and how its value has fluctuated over time.
When selling your home in a high-demand real estate market, it can be easy to get an inaccurate price. But by knowing what information is credible, sellers can get an accurate estimate for their properties.