Imagine you’re shopping for a used iPhone 11 that’s in good condition. You visit a resale website and discover that most are selling for approximately $350. Would you be willing to pay $400? Probably not. The market value is obviously well-established. There would be no reason to pay more.
Pricing your home for sale is similar. Your home has a market value and, if you were to list it, buyers would expect to pay close to that amount. If you price it too high, many buyers won’t even bother to see it. If you price it too low, you’ll leave money on the table.
Many factors come into play when calculating that market value – neighbourhood, street characteristics, special features, upgrades, condition, etc. However, the most important factors are the price similar homes in your area sold for recently and the price that homes are currently asking (your competition).
Finding out the market value of your home is a smart idea, even if you don’t plan to sell in the near future. It helps you make better decisions should something change and you need or want to sell.