HomeInsight - Find out your home's current value

How Is a Home's Market Value Determined?

What are you willing to pay? That’s often the market value. But in reality, the market value is what your house is worth on the open market - what are people paying for homes similar to yours.

If somebody grossly overpays for a property, that doesn’t mean that sales price is its real market value – not if similar homes in the neighborhood are not selling at the same price. Likewise, you may get a real steal on a house, but an assessor may not see it your way – he’ll say that other people are paying $20,000 more, for instance, for the same type of house in your neighborhood – so your taxes are going to be based on the real market value, not what you paid.

To decide what to pay for a home (or what to sell yours for) it helps to look at comps – the recent selling prices of nearby homes that are of a similar size, age and condition. Be sure to look for homes very near to yours, not similar homes in different neighborhoods. Everything in the area – from proximity to shopping, quality of schools, crime rate and general neighborhood upkeep – figure into the market value of any given home.