Do you know how much your Houston house is worth? David explains why some of the traditional methods of finding out how much your house is worth might not be as reliable as you think.
How much can someone can get for their Houston house?
Alison: I’m Alison from Big State Home Buyers and this is David, one of our acquisition agents. And today, I wanted to ask David how do you know how much someone can get from their home?
Methods for Determining Value of Homes in Houston
David: Well, we actually use several different methods, something like a normal realtor would do. Comps or comparables are the sales in the neighborhood that are similar houses, whether they be like size, structure – those specifics of the house to make it a real apples to apples comparison.
Now, we take all that into account. Me, personally, I go back a year, but when you’re dealing with appraisers and banks, a lot of times, six months or less is really what they go back.
So we take all that information from all the previous sales within that short amount of time to kind of get an idea of what the neighborhood is selling at. And if you’ve got something where the subdivisions are tract homes, then you’re really only dealing with upgrades. Whether when they bought a new home, they put in wood floors as opposed to carpet floors. And that narrows it down a lot to really put a strong value on the home to find out what they truly would sell at.
What Steps do I Take to Determine How Much House is Worth?
David: Well, this is my own personal feeling, so forgive me for this, but the first thing you don’t want to do is look at the CAD market value on your tax roll and think that is what your house is worth.
For two reasons. One, you could be completely overvaluing your house because you’re not taking into effect what the houses are truly selling in your neighborhood. And on the opposite, you could be undervaluing your house because if you’re in one of the hotter, newer areas, it still may be a low CAD market value, but everything may be selling three and four times more than what that actually says.
A CAD market value is what you are taxed on. It’s they’re saying your house is worth $83,520 and that’s what you pay taxes on. You can find that on Stewart tax rolls. Pardon me.
So, anyway, to answer your question: condition. You need to look at the condition of your home, the age of your home. Not every home needs to have granite countertops, but you need to really take into consideration the condition overall. How old is your roof? Do you have foundation issues? Do you have any kind of heating or air conditioning trouble? Those things are pretty expensive to fix.
The other thing to take into effect is just how old is it? Is it a 1920s? Because not everything in 1920 was an antique or a classic or historical monument.
Alison: Great. Well, that’s a really good start. Thank you so much for answering my questions. If you guys have any other questions about how much your house is worth, just leave your comments below and we’ll make sure to do a little video about it.