What is My Home Worth
This is a great question! How can you manage your personal finances without knowing what your biggest investment is worth?
So, how do you know what your home is worth?
Many people mistakenly think that a simple search on their local County Appraisal District website will give them what they are looking for. This just isn't the case.
While the Appraisal District is likely not too far off on home values, then can be far below or far above the actual market value of your property.
In Katy, Texas, and Texas as a whole, the County Appraisal Districts are not allowed to know the property sales prices, by law. Texas is known as a non-disclosure state.
Market value is all that matters.
Home values can only be truly known once someone makes an offer and follows through by purchasing a home. But, what if you aren't selling your home just yet and want to find out the value of your property?
If that is the case, then we need to look at the past sales of homes in your neighborhood. This step includes calling your REALTOR®.
And to learn more about this process, continue reading...
Recent sales of similar properties.
It is important to look at the recent sales of similar properties near your home. This is how REALTORS® and bank appraisers (different from county assessors) find the value of residential properties.
When Deb & Drew, REALTORS® investigate the value of a home, whether for a Seller Client, or for a Client who is simply curious to understand where they stand, we always start with recent sales of similar homes.
What is a recent sale?
A recent sale is any sale in the last 3-6 months. Preferably we would like to stick to 3 months as these sales are more relevant, but it is common to reach out to 6 months to find more comparable properties.
On rare occasion, REALTORS® will reach out to 9-12 months to find more comparable properties, but it would have to be justified.
What is a similar home?
Similar homes/properties are properties that have similar characteristics and are near your location.
In terms of characteristics we look at number of rooms, number of bathrooms, overall square footage, land size, pool/no pool, etc...
We also need to define "near your location." This commonly means within the same subdivision and without crossing any major roads.
For our readers in Katy, a good example of this would be Kelliwood or Cinco Ranch. While we can look at properties near your property, we wouldn't want to cross a major road, such as Fry Road, to look at another section of the same subdivision.
How many sales are taken into account?
This is a great question.
At times we, at Deb & Drew REALTORS®, come across two distinct cases:
- Properties with nearly no comparable sales
- Properties with many comparable sales.
Our goal is always to find two-three very strong comparable properties to help you, our Clients, understand their home value.
In the case that there are few comparable sales in the last 3-6 months we will lengthen the term of our search to 9-12 months. This is the justification I had mentioned earlier. This will likely yield an appropriate number of comparable properties.
In the case that there are many comparable properties then we will narrow our search based on pool/no pool, number of bedrooms/bathrooms, square footage, number of stories, etc... All of these parameters can help us to narrow the search and find the strongest comparables available.
Curious about your home value?
Now you know... No need to make a trip to the Harris County of Fort Bend County CAD sites, they yield little useful information in terms of home value.
If you are serious about knowing the value of your property in the Katy/Cypress/West Houston area, then call Deb & Drew today and we will be happy to assist.
You don't need to be getting ready to sell. We understand the need to be aware of your home value for personal/family financial planning and we would be happy to assist!