If you're planning to sell your property, it's essential to determine its market value accurately. Knowing the value of your property is crucial in setting a realistic price that will attract potential buyers and generate interest in your property. To determine the value of your property, it's important to consider several factors, including the current market conditions, location, size, and the condition of your property. However, the right way to estimate the value of your property is to calculate how much similar houses that are fixed up sold for in the past 6 to 12 months and deduct from this number the real estate broker and attorney fees that usually go together and can range from 8 to 12 percent of the selling price.

Here are some steps to take to accurately estimate the value of your property:

Research Recent Sales: Research similar houses that have sold in your area within the past 6 to 12 months. Look for houses that are similar in size, location, and condition to your property.

Consider Renovations: Consider the renovations your property needs to bring it to market value. Factor in the cost of repairs, such as repainting, fixing plumbing or electrical issues, and replacing appliances or fixtures.

Calculate Closing Costs: Calculate the closing costs you will need to pay when selling your property. These costs include the real estate broker and attorney fees that usually range from 8 to 12 percent of the selling price.

Deduct Closing Costs and Renovation Costs: Deduct the closing costs and renovation costs from the sale price of similar houses in your area. This will give you an accurate estimate of your property's value in the current market.

Here is an example: let's say you want to estimate the value of your three-bedroom, two-bathroom house in a suburban area. You research the recent sales of similar houses in your area and find that the average sale price for a similar house is $400,000. You estimate that your house needs around $30,000 in renovations to bring it to market value.

You will also need to factor in the closing costs for selling your property, which will include the real estate broker and attorney fees. Assuming a 10 percent rate for these fees, you would need to pay $40,000 in total closing costs.

To determine the estimated value of your property, you would subtract the renovation costs and closing costs from the sale price of similar houses in your area. In this case, the calculation would be as follows:

$400,000 (average sale price for similar houses) - $30,000 (renovation costs) - $40,000 (closing costs) = $330,000 (estimated value of your property)

Therefore, based on this calculation, the estimated value of your property is $330,000. This gives you an idea of what price to set when listing your property for sale.

By taking these steps, you can accurately estimate the value of your property, set a realistic price, and attract potential buyers. It's important to remember that the real estate market can change rapidly, and the value of your property can fluctuate.

**Please note that the information provided in this website is for educational purposes only and should not be taken as legal advice