How to Calculate Fair Market Value of Houses for Sale in Greenwood Indiana

The real estate market is very fluid in that rates change fairly quickly. The house you bought in the city of Greenwood Indiana ten years back had been priced much lower in recent years due to the housing downturn. This year, however, home prices are picking up slowly and many homeowners are choosing to have their homes appraised to determine their current fair market value. In a nutshell, getting the current value of your home necessitates comparing it with similar houses for sale in Greenwood Indiana.

Market Analysis

You should first obtain a Comparative Market Analysis (CMA) report from your real estate agent. Many agencies, such as the Mike Duncan Real Estate Group, offer this list which includes active and pending home listings and properties that were withdrawn or declared off the market.

Look at Comparable Homes

Through the CMA report, you may then cross-reference comparable houses according to your preferences in size (square footage), age, condition, home features, type, and other factors. It is recommended that you list around three to five comparable homes as your guide.

Getting Averages

Get the square footage of each of the five comparable homes. Then add the value and divide by the number of homes. This will be the average square footage of comparable homes in the market.

Fair Market Value

Then, taking the selling price of each of your comparable homes, add the value of each home then divide by the average square footage you have just determined. This value is the average price of the home (per square foot) in your local real estate market. Multiply this value by the total area (in square feet) of the home you intend to sell. The number is the fair market value of your home. Remember that in calculating the price, a little error in the process may translate to a big one in the final estimate, so make sure to check your math a few times over. Getting the current fair market value can help homeowners put up their own houses for sale in Greenwood Indiana. It can also aid them in other related real estate procedures later on, such as refinancing, getting a home equity loan, and tax reassessment.