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How do I calculate my own market value?

RealtyTrac recommends that you consult a local real estate agent to assist you with evaluating any property as a local real estate agent may have first-hand information about the condition of the properties that is not otherwise available without a personal tour of the individual properties.

You can estimate your own market value based on information available on the internet by doing the following:

  1. Find the properties you would like to use in the comparable analysis.  Best properties would be properties within the same development, built around the same year, with similar living area square footage and number of beds and bath.
  2. Write down the list price / sales price and square feet of each of the property
  3. Calculate the average based on the following methods

Price / SF method:

The Price / SF method is the more accepted method, however, because it requires that the subject property as well as the comparable sales and comparable listings all have square feet information, it is a little more difficult to do.  The formula is as follows:

  • (sold price 1 + sold price 2 + sold price 3 + ...) / (square feet 1 + square feet 2 + square feet 3 + ...) = average sales price / SF
  • (list price 1 + list price 2 + list price 3 + ...) / (square feet 1 + square feet 2 + square feet 3 + ...) = average list price / SF
  • average sales price / SF * subject property SF = subject property valuation based on sales price
  • average list price / SF * subject property SF = subject property valuation based on list price

Average Price method:

The accuracy of this method is greatly dependent on how close the comparable properties are to the subject property in living area square footage.

  • (sold price 1 + sold price 2 + sold price 3 + ...) / number of comparable sales = subject property valuation based on sales price
  • (list price 1 + list price 2 + list price 3 + ...) / number of comparable listings = subject property valuation based on list price
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