If you’ve been thinking about selling your home or you’re simply curious, you’ve probably asked yourself:
“What is my Lafayette home worth?”
It’s one of the most common questions homeowners have, and it’s also one of the most important.
You can type your address into an online home-value website and get an estimate in seconds. But determining what a buyer may actually pay for your home takes more than an algorithm.
Two homes can be located just a few streets apart and have very different values.
That’s why I believe the best place to start is with a local market analysis based on your specific home and what’s happening in the Lafayette real estate market.
What Determines the Value of Your Home?
There isn’t one single factor that determines what a home is worth. It’s usually a combination of several things.
Location
You’ve heard it before: location matters.
But even within Lafayette, values can vary considerably from one neighborhood or even one street to another.
Buyers may consider proximity to shopping, restaurants, employment, schools, major roads and other amenities. Neighborhood characteristics, lot location, traffic, surrounding properties and nearby development can also influence buyer demand.
That’s why I don’t believe in comparing a Lafayette home to properties miles away simply because they’re similar in size.
The most relevant comparable sales are usually the ones buyers would reasonably consider as alternatives to your home. If they were to view your home while home shopping, they would look at this one too.
Recent Comparable Sales
One of the most important parts of determining a home’s market value is looking at comparable properties that have recently sold.
I look at factors such as:
Location
Square footage
Age
Lot size
Bedrooms and bathrooms
Condition
Updates
Amenities
Garage and parking
Current competition
How recently comparable properties sold
But there’s an important distinction here.
A home’s asking price isn’t necessarily its value.
Anyone can put a house on the market at a certain price. What buyers actually paid for comparable properties provides much more useful information. Also, looking at what is currently on the market is very important. Being competitive with other current listings is important.
Your Home’s Condition Matters
Two homes with nearly identical floor plans can sell differently because of condition.
A beautifully maintained home with updated flooring, fresh paint and a well-kept exterior may appeal differently to buyers than a similar property that needs significant repairs.
But this doesn’t mean you should immediately start renovating your house.
In fact, please call me before you start spending money.
I frequently tell sellers to let me see the property in its current condition first.
You may think you need new countertops, flooring, appliances or an expensive bathroom renovation when those improvements may not produce enough additional sale proceeds to justify their cost.
I’d rather help you identify the improvements that could matter to buyers and the ones you may be able to skip.
The goal isn’t to make your house perfect. The goal is to make smart decisions about where your money will have the greatest impact.
Updates Don’t Always Equal Dollar-for-Dollar Value
This surprises some homeowners.
If you spend $30,000 remodeling your kitchen, it doesn’t automatically mean your home is now worth $30,000 more. And remember, spending $100,000 on an inground pool does not translate into $100,000 more when you sell.
Some improvements can make a property more desirable and potentially improve its saleability. Others may be primarily personal preferences.
That’s why I look at what buyers have actually been willing to pay for updated versus non-updated homes in your area.
Before spending thousands of dollars preparing your home for sale, let’s look at the numbers.
What About My Online Home Estimate?
Online home-value tools can be interesting and they can provide a starting point. Very often, these online valuation tools work well in neighborhoods of similar homes where there has been a lot of listing and sold activity. If your home is unique or on a rural piece of property where there are smaller and older homes nearby, the online valuation tool will not be accurate. This is where your real estate broker comes in.
There’s something an algorithm can’t do:
It hasn’t walked through your house.
It may not know that you recently renovated your kitchen.
It may not understand that your roof is newer.
It may not recognize the quality of your updates, your outdoor living space, the condition of your home or features that make your property different from nearby houses.
And often public-record information may be incomplete or inaccurate.
Online estimates are based primarily on available data.
A professional market analysis adds something else:
Local knowledge and human judgment.
What Is a Comparative Market Analysis?
A Comparative Market Analysis, commonly called a CMA, is an evaluation of your property using relevant real estate market data.
When I prepare a CMA for a Lafayette homeowner, I’m not simply looking at a computer-generated number.
I’m looking at your property in relation to:
What’s sold and how long it was on the market.
What’s currently for sale and how long it has been on the market.
What’s under contract.
What didn’t sell.
And importantly:
What buyers are choosing today.
That gives us a much better picture of where your home may fit into the current market.
Your Neighbor’s Sale Doesn’t Necessarily Determine Your Value
I hear this frequently:
“My neighbor sold for $425,000, so mine should be worth at least that much.”
Maybe.
But maybe not.
Your neighbor’s home could have been larger, smaller, more updated or situated on a different lot. It may have had a pool, newer roof, different floor plan or other features.
It also could have sold under different market conditions.
Your neighbor’s sale is useful information—but it’s only one piece of the puzzle.
What You Paid for the House Doesn’t Determine Today’s Value Either
Your original purchase price is part of your personal financial history, but today’s buyers aren’t basing their offers on what you paid for the property.
They’re comparing your home to other homes they could purchase right now.
The market determines value based on current supply, demand, comparable sales and buyer behavior.
That’s why pricing should be based on today’s market rather than what you paid, what you’ve spent on the house or the amount you’d ideally like to receive.
Pricing Too High Can Cost You
It’s tempting to start high because you can “always come down later.”
But that strategy can backfire.
The first days and weeks that your home is exposed to the market can be extremely important. That’s when a new listing can attract the attention of buyers who have been waiting for a property like yours.
If those buyers believe the home is overpriced, they may simply move on.
Then, after one or more price reductions, buyers may begin wondering why the property hasn’t sold. They often wonder, "What’s wrong with that house?" Most often, nothing’s wrong with the house; it just started out too highly priced and has become stale on the market. Buyers are more educated now than ever. They know what’s new on the market and know what has been sitting on the market. It’s all at their fingertips.
My goal isn’t to tell you the highest number you’d like to hear. My goal is to give you an honest assessment supported by the market.
I’d much rather have a straightforward conversation with you upfront than promise an unrealistic price just to get a listing. I’m a straight shooter and have your best interests at heart, even when it is to deliver the news that your home is not worth what you think it is.
Could Your Home Be Worth More Than You Think?
Absolutely.
The opposite problem happens too.
Some homeowners have lived in their homes for many years and don’t realize how much their property value may have changed.
You may be sitting on considerably more equity than you realize.
That’s another reason I don’t recommend relying solely on an online estimate.
Let’s actually look at your property and the market.
I’m Not Ready to Sell. Can I Still Find Out What My Home Is Worth?
Absolutely!
You don’t have to be ready to put a sign in the yard.
Maybe you’re thinking about selling next year.
Maybe you’re considering downsizing.
Maybe you’re thinking about buying another home and need to know approximately how much equity you have.
Or maybe you’re simply curious.
That’s perfectly fine.
Knowing approximately where you stand can help you plan your next move even if that move isn’t happening anytime soon.
So… What Is Your Lafayette Home Worth?
The answer isn’t hiding in a generic price per square foot calculation or an online estimate.
It’s found by looking closely at your home, your neighborhood, recent comparable sales, current competition and today’s buyers.
That’s exactly what I can help you do.
Find Out What Your Lafayette Home Could Sell For
If you own a home in Lafayette or the surrounding Acadiana area, I’d be happy to prepare a complimentary, no-obligation market analysis for you.
I’ll look at the numbers, the competition and your home’s individual characteristics and give you a straightforward assessment of where I believe your property fits into today’s market.
And if you’re considering selling, please don’t start making expensive updates before we talk.
Let me look at the house first.
I can help you determine what may be worth doing, what probably isn’t, and where your money may be better spent.
You don’t have to be ready to sell.
You just have to be curious about what your home is worth.
Let’s find out.
Melanie Nash, Broker/Owner
National Realty of Acadiana LLC
Lafayette, Louisiana
nationalrealtyacadiana.com
Local Expertise. Personal Service. Proven Results.