Are you curious to know the value of your home in Little Rock, but don't necessarily want to jump through the hoop with a realtor?
You may be surprised that it is relatively easy to do much of the same work a real estate agent can provide yourself. In this blog post I'm going to share all my secrets on how you can estimate the value of your property without having to contact a realtor. So buckle up and let's dive into comparing comps, assessing repairs needed, and crunching some numbers so that you can get an appropriate understanding of what your property might be worth before even discussing it with anyone else!
What you need to know before estimating your home's value
Before estimating the value of your Little Rock home, you want to make sure you have all the information you need before coming up with an accurate estimate.
That said, you can save time and money by researching homes similar to yours, called comparables.
You can find comparables yourself for your property, using sites like Zillow, Trulia or Redfin. Search for homes that have sold within the last 6 months, are within 1 mile of your property, and have sq. footage within 300 feet. Take the average price per sq ft of all these properties and that is your price per sq. ft. Multiple this by the sq ft of your property.
Once you have your comparables in hand, ensure that the house is of similar size and condition as yours. You should also consider any upgrades or modifications to the home that could affect its value. If needed, factor in recent improvements or renovations you've made to your own property.
How to estimate repair costs
If you want to get a realistic estimate of your home's worth, then you need to know how to estimate repair costs. There are lots of ways to do this but the easiest and most commonly used method is the cost per square foot method. Basically, it works by taking the total area of your home (usually in square feet) and multiplying it by a number that factors in the cost of materials, labor and other expenses related to repairs. This can be tricky though because what could be relatively expensive in one part of the country could be cheaper somewhere else -- so it pays to shop around!
An easy way to do this is to estimate $10 per sq. ft. if it is just cosmetic updates needed like new cabinets, paint, flooring etc. $20 per sq. ft. if it is cosmetics plus additional work like replacing windows, or plumbing. Use $30 per square foot if it is a total rehab needed, things like a new roof or HVAC system.
Have a Professional Appraisal Conducted
If you don't want to spend the time running the numbers yourself, another option is having a professional appraisal done. Seasoned real estate professionals have seen all kinds of market fluctuation and will be able to give you a much more comprehensive estimate than doing comparative assessments and guesstimating repair costs.
Getting a professional appraisal done doesn't come cheap. Depending on the complexity and size of your Little Rock property, you can expect to spend anywhere from $300-$1,000 for an appraisal.
Estimating the value of your home can seem daunting and challenging, however, if you break it down into manageable steps and gain knowledge of the real estate market in your area, you can build an accurate estimate all on your own.
Lastly, for those lacking valuable time or eager for additional assistance, don't hesitate to contact us for more info!
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