What is my house worth? As Houston homebuyers, we provide tips regarding how much your house might be worth. David Schmitz, one of our experienced acquisition agents answers this commonly asked question in a playful article below.
Understandably, it is very common for a seller to ask me, “what is my house worth?” This is a question that is asked by every single person we talk to within the home buying business. So many sellers these days are more educated than they ever before, thanks to networks such as DIY, Bravo, and A&E. Almost every channel has some sort of Real Estate show! They provide everything from expert to laymen’s views on the housing market in this country. They discuss how upgrades and updates help you to get the most value out of your house. They talk about flips and preparing a space for rental income. In the end it almost seems kind of easy to just slap some paint on the walls, add a walnut bookcase for storage and stick a sign in the yard. SOLD!!!
Well maybe I exaggerate a little. As sellers, we hope that we can hit the real estate lottery when we go to sell. Our eyes seem to travel straight to the number on our tax rolls and we jump for joy! Herein lies the reality……….. Now follow me on this: the neighborhood is the true indicator of what your house is worth.
I agree this may not sound very fair and to be honest it’s not. Things like foreclosures, short sales and HUD home sales can drag a neighborhood down in a tight spiral that would make an Olympic figure skater jealous. While you may see a $250,000 Market Value on your tax roll, your house could still be worth much, much less in the current buying market. If you find that recent sales in your subdivision are selling at 200K to 210K and are in the same or similar condition to yours, then you can probably assume what you can most likely sell your house at.
* CAD Market Value stands for Central Appraisal District Value. Lawmakers created appraisal districts to keep the process of appraising your property separate from the process of levying a tax. They give each local taxing jurisdiction (city, county, school district, utility district, etc.) a list of taxable property, together with the taxable value of each property. The taxing jurisdiction then decides, based on that list, how much tax to levy. The jurisdiction then sends bills and collects the taxes.